HomeMy WebLinkAbout1998-03-03 Support Documentation Town Council Evening Session
VAIL TOWN COUNCIL
EVENING MEETING
TUESDAY, MARCH 3, 1998
7:30 P.M. IN TOV COUNCIL CHAMBERS
AGENDA
NOTE: Times of items are approximate, subject to change, and cannot be relied upon to determine at what time Council will consider an item.
1 . CITIZEN PARTICIPATION. (5 mins.)
2. CONSENT AGENDA: (5 mins.)
A. Approve the Minutes from the meetings of February 3 and 17,
1998.
3. Presentation of Vail's Youth Recognition Award to Collins Canada of the
Vail Mountain School and Traci Phelan of Battle Mountain High School.
(5 mins.)
4. Resolution No. 5, Series of 1998, a Resolution Establishing the Time for
Pam Brandmeyer Council Meetings. (10 mins.)
ACTION REQUESTED OF COUNCIL: Approve, modify, or deny
Resolution No. 5, Series of 1998.
BACKGROUND RATIONALE: On February 17, 1998, the Vail Town
Council adopted Ordinance No. 2, Series of 1998, which provides that the
meeting time of Council's regular meetings shall be established biennially
at Town Council's first annual meeting. Therefore, it is appropriate at this
time to adopt a time for the commencement of the regular meeting which
will continue until the first organizational meeting following the next
regular municipal election to be held on November 2, 1999. It had been
suggested by Council that the appropriate time is 7:00 p.m.
5. Review and discuss the infrastructure repairs, street scape design, public
Larry Grafel art elements, project estimated budget, and construction schedule for
Todd Oppenheimer Seibert Circle capital improvement project. (15 mins.)
Nancy Sweeney
ACTION REQUESTED OF COUNCIL: Approve, modify as necessary,
defer, or deny the project. If the project is approved, additionally request
that Public Works/AIPP be allowed to enter into a contract with Jesus
Morales for the central amphitheater and art pieces.
BACKGROUND RATIONALE: The Town Council during the 24 February
work session directed staff to review the project again and bring back a
project that is capped at $634,500. It was to include the Morales are .
elements, to retain existing peripheral street scape improvements that are
on private property, and, if there were any additional expansion of the
project, to include any other art pieces, it would have to be financed
fhrni inh nriw~+a fi inr!
STAFF RECOMMENDATION: Approve the project design and project
budget at $634,500.
6• Discussion of community engagement process for developing a
Russ Forrest dedicated funding source for housing and identifying land opportunities
Suzanne Silverthorn for future parks and recreation, and the work plan for implementing
Andy Knudtsen Option 1. (30 mins.)
Todd Oppenheimer
ACTION REQUESTED OF COUNCIL: Review problem statement,
givens, public involvement process, and the work plan for implementing
Option 1.
BACKGROUND RATIONALE: The Town Council has identified the
creation of a dedicated funding source for housing as a high priority
action. In addition, the Town has the need to identify land opportunities
for housing, parks, open space, and other community facilities. At the
February 17th Council work_ session, staff presented four options for
achieving the CounciPs goals related to housing. On February 24th the Town Council directed staff to implement Option 1. Option 1 would ,
provide two products: 1) an estimate funding level needed for housing
and a rational for that funding level; and 2) a land opportunities map that
would identify properties appropriate for housing, parks, open space, and
other public facilities. This process would be complete by June 31, 1998.
STAFF RECOMMENDATION: Approve problem statement, givens, public
involvement process, and the work plan for implementing Option 1.
7. Adjournment - 8:40 p.m.
NOTE UPCOMING MEETING START TIMES BELOW:
(ALL TIMES ARE APPROXIMATE AND SUBJECT TO CHANGE)
I I I I I I I
THE NEXT VAIL TOWN COUNCIL REGULAR WORK SESSION
WILL BE ON TUESDAY, 3/10/98, BEGINNING AT 2:00 P.M. IN TOV COUNCIL CHAMBERS.
THE FOLLOWING VAIL TOWN COUNCIL REGULAR WORK SESSION
WILL BE ON TUESDAY, 3/17/98, BEGINNING AT 2:00 P.M. IN TOV COUNCIL CHAMBERS.
THE NEXT VAIL TOWN COUNCIL REGULAR EVENING MEETING
WILL BE ON TUESDAY, 3/17/98, BEGINNING AT 7:30 P.M. IN TOV COUNCIL CHAMBERS.
illllll
Sign language interpretation available upon request with 24 hour notification. Please call 479-2332 voice
or 479-2356 TDD for information.
C:WGENDA.TC
COUNCIL FOLLOW-UP LTQUESTIONS FOLLOW-UP SOLUTIONS ~
~ 998 LARRY/GREG H.: With the increased speed from the Main At the time of the construction of the mE in Vail roundabout, this issue was
2l17/98 CROSSWALK Vail roundabout pourin g westbound on South Fronta ge d i s c u s s e d. L i n e s c a n b e p a i n t e d. S t a ff w i l l r e v i s i t. See a ttac he d memo
Sybill Navas Road, should a crosswalk be painted to help draw drivers' from Larry.
attention to the fact pedestrians are crossing from the police
tlepartment to the Holiday Inn side of the Frontage Road.
2/24/97 VAIL PASS BIKE PATH LARRY: Since the west side of the path is in Region 1(John
Kevin Foley Unbewouf???), perhaps a different strategy can be worketl
out to repair the numerous potholes, etc. Cooperating
parties: Trails Committee from the ECRTA, TOV
commitment of equipment/operators, and CDOT.
x
February 26, 1998 Page 1
,
4VAILi
TOWN OF 1309 Yail Yalley Drive Department of Public Works & Transportation
Yail, Colorado 81657
970-479-21 S8 / Fax 970-479-2166
MEMORANDUM
TO: Vail Town Council
Town Manager
FROM: Larry Graf
Dire r of Pu (ic Works & Transportqtion
DATE: February 27, 1998
SUBJECT: Pedestrian Crossing Striping
A council member requested that staff look at striping the pedestrian crossing located at the east
end of the police building, across the South Frontage Road to the Holiday Inn sidewalk.
The Town of Vail currently does not have any painted crosswalks, anywhere within the town
boundaries. The decision not to stripe pedestrian crosswalks was based on several factors. They
are;
• The striping of crosswalks were viewed as being too urban.
• Striping is not compatible with the aesthetics/ambiance standards that the town is
striving to achieve through it's street scape plan.
• Research has shown that striped crosswalks provided a false sense of security for
pedestrians usitlg them. • There is no significant reduction in preventing pedestrian-vehicle accidents when
crosswalks are striped.
It is my recommendation that we do not stripe the intersection. Pedestrians, regardless of the
intersection, must continue to use eaution when crossing any street.
xc: Pam Brandmeyer, Assistant Town Manager
Greg Morrison, Cluef of Police
Greg Hall, Town Engineer
~ ~ RECYCLED PAPER
MEMORANDUM
TO: Town Council
Planning and Environmental Commission
FROM: Lionshead Redevelopment Master Plan Team
Mike Mollica/Dominic Mauriello
DATE: March 3, 1998 .
SUBJECT: Stage 3--Lionshead Master Plan--A joint work session to continue discussions
regarding height, mass and density parameters. The culmination of Stage 3 will
be the adoption of a rationale and desired outcomes which establish 'the
regulatory framework for height, mass and density of buildings in the Study Area.
"The goal of this joint worksession is to provide the PEC and Council with additional
background information with regard to:
a) floor-to-floor heights;
b) geographic distribution of building heights;
c) bonus heights;
d) development standards; and
e) density parameters.
The Master Plan Team is looking for direction on the above 5 items. Any outstanding
issues and concerns should be articulated and the team will be prepared to directly
address those concerns and issues at the next worksession.
1. STAGE 3 SCHEDULE
Stage 3 of the Cionshead Master Plan has been in-progress since May of 1997. At this
time, we are nearing completion of the third stage of the Master Plan and would propose
the following schedule:
Tuesday, March 3---- Joint PEC/Council work session.
Monday, March 9---- Final PEC recommendation on Stage 3.
Tuesday, March 10--Council afternoon work session (if necessary).
Tuesday, March 17--Council aftemoon work session; and
--Council evening meeting--DECISION on Stage 3.
, Please keep in mind that this proposed schedule can be modified if additional meetings
are deemed necessary.
*VAR
Town~~
I1. OUTSTANDING ISSUES RELATED TO STAGE 3
The following is an overview of the Stage 3 outstanding issues which staff believes need
further discussion and consensus:
A) Determine the appropriate floor-to-floor height.
Staff has contacted the following architeets about floor-to-floor requirements on projects
they are working on. All assume at least a 9' floor-to-ceiling height for residential/lodge
units. The results are as follows - - Henry Pratt, Gwathmey Pratt, Vail
Stated he is working on the Marriott and is finding an average of 11' floor-to-floor as being
tight. The Liftside project (Cascade Village) was constructed at 10.5' floor-to-floor and
was very tighUnot very manageable. (For a 5-story building his average wou/d be 11'
f/oor-to-f/oor.)
Steve Isom, Isom and Associates, Eagle
Stated that for a commercial building, the first floor needs 10' floor-to-ceiling and 15" of
structure resulting in 11.25' floor-to-floor. For residential levels with 9' ceilings, one needs
10.25' floor-to-floor. (For a 5-story building his average wou/d be 10.45' floor-to-floor.)
Bill Pierce, Fritzlen Pierce Briner, Vail
Stated that the first floor commercial needs to have a floor-to-floor height of 14'. He
stated that 10.5' for other floors can be done but is difficult. An 11' floor-to-floor works,
but 12' would be ideal. (For a 5-story building his average wou/d be 11.6' f/oor-to-
f/oor.)
Galen Aasland (Architect/PEC Member), Vail
Stated that a project he is working on in Idaho had an average 10.9' floor-to-floor.
Recommends a first floor at 16' and 11' for other floors. Stated that one might need more
than 9' ceilings for quality condos. (For a 5-story building his average wou/d be 12' floor-
to-floor.)
Gordon Pierce, Pierce Segerberg Architects, Vail
Stated that a 9` floor-to-floor is not realistic. Stated that the first floor commercial needs
to be 12' minimum for the floor-to-floor. Recommends that the upper floors (residential)
be a minimum of 10' floor-to-floor. (For a 5-story building his average wou/d be 10.4'
f/oor-to-f/oor.)
Terry Willis, Urban Design Group, Denver
Terry stated that in "luxury condos", such as in Bachelor Gulch, there needs to be 15'
floor-to-floor for the first level retail. Then he recommends that there be 11' floor-to-floor
for the upper residential levels. (For a 5-story building his average wou/d be 11.8' floor-
e to-floor.)
Cottle Graybeal Yaw (CGY) Architects, Aspen
CGY has provided cross section drawings (see attached) of typical first floor retail and
upper level residential units. The section drawings indicate a 14.5' floor-to-floor for the
fower level commercial and an 11-11.5' floor-to-floor for the upper level residential. The
6" difference is due to two different types of heating systems (forced air vs hydronic
2
baseboard). (For a 5-story building his average wou/d be 12.1' floor-to floor.)
In summary, the average floor-to-floor height recommended by the architects
surveyed above is 11.3.
Examples of floor-to-floor heights in buildings currently under construction in Vail:
Austria Haus:
First floor - 10'
Other floors - 11.44' (average) Average - 11.08' (based on 4 f/oors) _
International Wing:
First floor - 16'
Other floors - 9.96' (average)
Average - 11.97' (based on 3 f/oors)
B) Geographically identify permitted heights of floors, plus a roofl and establish the
acceptable "bonus heights" and associated perFormance criteria for achieving the bonus
height.
The proposed building height guidelines for the Lionshead Master Plan are outlined
as follows:
1. Maximum by-right height limit based upon geographic location of property within
the study area.
a. Area "A" -(see map) - This area is characterized by existing single family
and duplex homes. It is proposed that any new development in this area
conform to this fabric and be limited to the existing development standards
in place (maximum height of 33' for a sloping roofl.
b. Area "B" -(see map) - This area is currently open space, located south of
Gore Creek and is characterized by wetlands, steep embankments and
undeveloped open space. It is proposed that this area be maintained as
an open space resource, with no structures permitted. However, any
open, recreation-type support structures that the Town of Vail may see as
appropriate in the future shall be limited in height to 1-story, plus a roof.
c. Area "C" -(see map) - This area is characterized by the commercial core
and multi-family residential uses. It is recommended that structures in this
area have a by-right height limit of five stories, plus a roof. Structures in
this area also are eligible for bonus heights based upon their orientation
and conformance to performance criteria.
2. Roofs. The roof height allowance is defined as the increase in height from the
maximum permitted eve height, to the ridgeline of the roof.
3
a. Sloped roof requirement. Due to the desire for a consistent, high quality,
alpine architectural style in the Lionshead area, it is proposed that flat
roofs no longer be allowed on any new construction, building additions or
rehabilitation to existing buildings.
b. By-right roof allowance. In conjunction with the requirement for a sloping
roof, it is recommended that every building be required to have a minimum
5/12 pitch roof, with a maximum by-right roof height of 14 feet, (this is
based on the height of a 5/12 pitched roof on a typical 65' wide, double-
, loaded building).
. 3. Bonus Heights. The proposed height bonuses for Area "C" of the Lionshead study,
area are divided into two sections - additional stories (building height before the
roof starts), and additional roof height.
a. Additional stories: Any structures that are predominately oriented north-
south, (with average double-loaded corridor), are eligib/e for a bonus sixth
story, according to conformance with the performance criteria.
b. Bonus roof height allowances: Based on the predominant orientation of the
building and the conformance to perFormance criteria, it is recommended
that the following bonus roof allowances be created:
1. 9/12 pitch with a maximum roof height of 25' (this height is based
on a 9/12 roof on a typical 65' wide double-loaded building). This
bonus roof height would be available for all buildings in Area "C"
regardless of their orientation, if they meet the performance
criteria. This roof height will allow for the creation of a narrower
"loft" story inside the roof.
2. 12/12 pitch with a maximum roof height of 33' (this height is based
on a 12/12 roof on a typical 65' wide double-loaded building). This
bonus roof height would be available for any building in Area "C"
that is predominately oriented north-south and meets the
pertormance criteria. This roof height will allow for the creation of
an additional story, plus a loft space inside the roof.
4. Exclusions. The following exclusions to by-right or bonus building heights are
proposed in order to protect the character and visual quality of certain spaces
within the Lionshead Study Area. It is suggested that building setbacks, build-to
lines and architectural step-backs will be detailed in the architectural and site
guidelines.
a. Any building adjoining the Gore Creek stream corridor or adjoining the ski
yard shall be limited to a 4-story maximum permitted eve height, and must
conform to the architectural design guidelines for buildings fronting these
areas. However, this is not intended to prevent a building from attaining
its bonus height after stepping back from the restricted building face.
4
b. Any part of a building that is south facing, north facing, or adjoining the
Lionshead retaif mafl area sha(f be limited to a 5-story maximum permitted
eve height. This is not intended to prevent a building from attaining its
bonus height after stepping back from the restricted building face.
c. All buildings in Area "C" shall conform to the Lionshead architectural and
site design guidelines, which may influence the initial eve height and
building step-back requirements.
d. AII building shall respect the established public view corridors.
5. Maximum Building Height Synopsis. The following maximum attainable building heights under the above proposals are based on an assumed 11.5' floor-to-floor
height.
a. 71.5 Feet - Maximum By-Right building height, with no bonus story and no
bonus roof height (57.5' for five stories, plus 14' for the roofl.
b. 82.5 Feet - Building height with no bonus stories and the initial bonus roof
height, (57.5' for five stories, plus 25' for the roofl.
c. 90.5 Feet - Building height with no bonus stories and the maximum bonus
roof height, allowed only for north-south oriented buildings (57.5' for five
stories, plus 33' for the roofl.
d. 102 Feet - Building height with bonus sixth floor and maximum bonus roof
height, allowed only for north-south oriented buildings (69' for six stories,
plus 33' for the rooo.
C) Development Standards:
a) GRFA--staff recommends that the existing GRFA regulation (80% of buildable area) be
eliminated for properties in the Lionshead core area.
b) Site Coverage--staff recommends that the existing 70% site coverage limitation be
eliminated for properties in the Lionshead core area.
c) Setbacks--staff recommends that the existing 10-foot setback requirement be
eliminated for properties in the Lionshead core area. It is suggested that building
setbacks be delineated in the architectural and site guidelines, in conjunction with
Building and Fire Code requirements.
d) Landscaping---staff recommends that the existing 20% minimum landscaping
requirement be eliminated for properties in the Lionshead core area.
D) Density (units/acre) standard-maintain current standard of 25 units/acre. AU's, EHU's
and fractional fee units (FFUs) would not count towards density.
5
Staff has outlined some ideas on evaluating density in the Lionshead commercial core
area:
1. Retain the existing density provisions (CC2 - 25 units/acre, HDMF - 25 units/acre,
MDMF - 18 units/acre).
2. Excfude accommodation units (AUs), employee housing units (EHUs), and
fractional fee units (FFUs) from the calculation of density. This may encourage
the development of these unit types. Dwelling units (DUs) would only be allowed
up to the existing density allowance (i.e. X units/acre).. Generally, building height,
architecfural and site guidelines, and parking requirements will determine the " carrying capacity of the site (i.e how many units can be accommodated on a site).
3. The gross square footage added to a structure via the height bonus (sixth floor
and floor area in the roofl must be added in the form of AU's, EHU's or FFU's.
This is not to say that these uses must be located on the sixth floor and in the roof
area, but that the additional gross square footage must be located somewhere in
the structure.
4. AUs and EHUs shall meet minimum requirements to ensure that quality units are
constructed. Examples would include:
AU - 9' ceiling height.
EHU - 450 sq. ft. minimum and 9' ceiling height.
5. Allow any properties which are currently nonconforming with respect to density to
rebuild to existing/constructed density.
F:\EVERYONE\PEC\MEMOS\98\LION.303
6
•
~
I-J
O
Lj-
~
00
~
~
O
~
~ o
0
p
i
,
ZONE 'A'
,
ZONE 'B'
ZONE 'C'
_ _ _ _ - _ _ , _
RECOI"IMENDAtION FCaR RE IL
FL4QR TO FLOOR NE(GHT:
_ • s" t,r. wr. cavcRErE
•T ON METAI, L,A'tN
`Q 10" 5.477 INSl1l.ATION _
cv -
NOT t GOLp WATER .
- suFII-LY REtuRN r-oR
FORGEp AIR 8Y6TEM `
10° r-QRGED AIR DUGt .
PLUMBIwC,
WASTE PIPE
FIRrz PROTEGTI0N 9PRINKLER pE5D LINE
8" REGE56ED INCANDESCENT
L tCsN7lNCrt
~ 3" STONE PAVERS
~
A
fN OUR EXF'ERiET1GE, A 12'-0" GE11NCa
NEIGHT 15 bTRONC~LY PREFERRED B
7ppAY'9 f2ETAI4 TEN,4NT5. A Z'-6"
MBLY AS SNd
7Yp. RE'~AI_L~ FLOOR/GEILfNCx ASSr
MEETB MlN(MIJM GOpE REQUIREMENT
OF A ONE NrJUR SEPaRA1'IpN, TH19
pIAGRAf'1 REPRF-9ENT5 5UFFIGIE1dT
SPAGr: F4R CDORDIN.4TION OF FIRE
PROTEGtIpN, MP!GWANIGAL,
ELEGTRIGAL, ANp STRIJCTuRAL
5YS7EM5. IDEHALLY, TWE CON'fRACTO
WOULD REQUIRE 1'-3" BELOW STrzEL
FOR COORDINATION OF BLIILDING
5Y9TE1"'15.
. . , • . .
. , r , , .
0 0 0 0 o U o U o O o
117d I
. Y~
COTTLE RET'AtL BUILDING SEGTION
C~} T GRAY13EAL bAYb rrWCcz xo.:
YAW
ARCTiImEC'CS ~~Z4~-~I8
?n I1 " = 11_011
~ AGD t
b
~tu usr urren rn uoi1 r~rrra~-2M n~m)u~a9~o
SiS ' d 2,69 ' ON 00 1dIA3Q SlNOS32i IIti/1 WdOZ : S 866T ' bZ ' H3J
REGOi`1P'IENDATION FOR
1"iID-LEYEL GONlaO FLOOR TC?
FLOOR HEICsHT:
- ' S" LT. WT. GONCRETE
pN ME7AL LA7P
0 0
cr 10° E3AtT INSULATION
Nor warER suPPLY 4
RETLlRN POR NYDRONIG
BA5E60ARD HEAT
PLLIMBING
WA9Trz plpE
r
FIRE PROTEGTION 9pRINKLER FEED LINE
~ 8" REGES9ED INCANDEr-CENt
L (CsNTiNG
Q rY . RoDM
,
NYDRONIC BASE B0.4RD
NEAT $Y$TEM
NOTE:
(N pl,lF2 EXpERIENCE, A 9'-0" GEIING
HEICxHT 15 TNrz DrESIIRED MINIMUM PO
CONC70MlNIUMS IN TN15 MARKET. A-W
r-LOOR/CEILING ,455EMIBLY A5 SN
MEETS MINIMUM GODE REQUIREMENT
OF A ONrz NOLlR StPARATION. TNIS
pIAGR,4M, NOWEVER, MAY REQUIRr:
REROIJTING, RE5IZIN6, AND
, „ . RECOORpINATION OF 5Y9TEM5 DURI
• GONS7RlJCT[ON. A MORE 6LIFFIGIENT
455r:M6L7 r-pR tWl3 tJSE Wdl1Lp 6E A
2'-6° INTERSTITIAL SPAGE, 7NEREFORE
ALL,OWING MORE SPACE BELOW STEEL
5EAP1S. IDEaLLY, THE CONTRACTOR,
WOULD REQUIRr: 9" Br:LOW S1'Erz1. FOR
COORDfNATION c7F 5l11LDiNG 5YSTE1`45.
COTTLE Mla-GV57 GONDO BUILDING SEGrlpN
GRAYHEAL
YA1Y un: -qa F$~, x0.:
AACHITECTS 2-24 Sk- LTp ecua: oiunr Xr
cia ur ur~ M, m iuu Irro)M-um Amwm ° AGO
SiE ' d L69 ' ON 00 1d_lA3Q SlHOS38 _lItiA Wd6T: S B66ti ' bZ ' H3.A
REGOMMEND,4TION FOR
uPPER-LEvEL coNDa FLO6R
?'O FLOOR HE IGHT:
_ . .s . 5" LT. wr. GONGRETE
ON METAL LATN
9
~ im" BATT INSLILATION
~
~ NOT t COLD UlATER
• SLIPPLY i RETLIRN FaR '
FORGED AIR 8'1"5'fEM
10" r-ORGEL7 AIR DUGT
pLuMBiNG
lUAStE PIPE
r-IRr PROtr=G'C(ON -
SPRINKLER r-EED L.INrz
~
-8" REGESSNp INGANpESGENt
LIGNTI1VCs
~ tYP. RaoM
,
iP
IN pUR EXPERIENCE, A 9'-0" GEIING
HEICaNT IS TWE DESIRrzP MINIMUM PO
CONDOMINlUMS IN 7HiS MARICET, A
2'-6" FLOOR/Gt:ILING ASSEMBLY A$
5HOUN M$ETS MINIMUI`1 GODE
RrzQLlIREMENTS OF A ONE HOL{R
9EPARATION. TH19 D1,4CsRAM
REPRESENTS SlJFF1GIENT 9pAGE FOR
GOORDINA7ION OF FlRE PR01'EGl')
MECHANICAL, ELEGTRIGAL, ,4ND
' ' ' ' S'tRUG1'1JRAL 978TEM8. (DEALLY, THE
CON7RAGTOR lUOULD REQU1RE 1',V
BELOW STEE6L POR GOORDINATIQN OP:
6LIILDING 5Y5TEM5.
COTTLE
GRAYHEAL HI6H~G05T GONDO BUILDING SEGTI
~ Y'AW oetr. t.oXccr ,ro.:
A,RCHITECTS 2-24-qlD
LTD ew.c: ua?mr ax: SK2
-
51o rerf utxuN ow, to eiou r(m"r Kmmpa-ma 1/2 I'-O" AGD
S/b ' d L69 ' ON 00 1d7A3Q 51NOS3N 1ItlA WdOZ : S 866T ' bZ ' 96-1
' MEMORANDUM DRAFT
TO: Lionshead Redevelopment Master Plan Team
FROM: Mike Mollica, Project Manager
DATE: February 23, 1998
RE: Stage 4 Schedule
Listed below in outline form is a proposed schedule for Stage 4. Please note that Stage 4 takes on
two separate tracts. One tract is for the Design Guidelines and the second tract is for the drafting of
the Master Plan. Also note that both tracts come together in the beginning of July for a final
Council worksession and vote on July 7th.
Stage 4 - Design Guidelines
March 20th - Hire subconsultant
Saturday, April 18th
or
Saturday, April 25th - Design Charette with DRB, PEC, Town Council, local designers.
May 18th - Joint worksession with PEC and DRB.
May 19th - Worksession with Town Council
June 22nd - Final PEC recommendation on Stage 4 Design Guidelines.
July 7th - Council worksession and Council evening meeting. Final vote on Stage 4
Design Guidelines.
Stage 4- Final Master Plan
May 1 lth - Worksession with PEC (draft of plan prouided to PEC a minimum of 1
week in advance).
May 12th - Worksession with Council (draft of plan provided to Council a minimum of
1 week in advance).
June 22nd - Final PEC recommendation on Master Plan.
July 7th - Council worksession and evening meeting. Final vote on Stage 4 of the
Master Plan.
Stage 5- Adopt required Code modifications
This stage will follow the standard PEC/Council submittal process.
f:\everyone\mike\memos\ffi4sched.223 1
s
Y
LIONSHEAD HEIGHT & MASS PUBLIC MEETINGS SUMMARY
Presidents' Weekend 1998
Sundav. Februarv 15
Members of 'the public present: 2(representing Lifthouse)
Opinions, comments and concerns:
• Concerned about loss of private views; TOV should consider condemnation of a portion
of the VA core site to preserve views and address pedestrian congestion.
• Concerned about congestion problems in ski yard and pedestrian areas, especially if the
size of the pedestrian walkways are to be reduced. •
• Concerned about accuracy of ski association study that shows 40 percent of those visiting
ski areas to be non-skiers during winter and that shopping is the number 2 activity in
resort destinations.
• Widen skier pedestrian bridge and make part of it pedestrian only.
MondaY. Februar,y 16
Members of the public present: 15
Opinions, comments and concerns:
• Are you really seeking public input? It really doesn't sound like it.
• This plan is just "smoke and mirrors" so VA can get its project built.
• Which of the four height concepts did the Vail Town Council favor?
• It upsets me to hear about a TRC in Lionshead near the Landmark (too much noise,
would devalue our property).
• I eat in Vail Village, then like to go back to my "quiet" condo in Lionshead.
• What is the noise factor for all these plans?
• I send my kids to the General Store and it is safe for now. We don't want any more bars
in Lionshead. I want this to be a family place.
• There has been no place for my under-l8-year-old daughters to go; nothing to do at night.
• We bought in Lionshead because it was quiet; we do our shopping in Vail Village. -
• Is there some other use for redevelopment of VA's core site other than a massive hotel?
• I like the idea of low buildings; we don't want to recreate a New York City here.
• We bought our place because we like our view; this project stands to negatively impact
our view.
• Which side of the building would you measure the height from? There ought to be a
fixed height. Pm afraid VA could "buy" (through the height bonus public benefit
process) a 25-story building.
• What's the by-right height? Are there guidelines you need to meet just to go to the basic
height? Go back to the public domain enhancements to drive building height on a site-
by-site basis.
• I agree with the pedestrian and retail concepts 100 percent; I'm just concerned about
height.
• I'm concerned about a large, tall hotel blocking views and creating noise. How many
more live beds are needed in Lionshead? There are already more live beds in Lionshead
than in the Village. I have friends who can still rent condos at the last minute in
Lionshead. What is the need for live beds?
• I'm concerned about dark corridors caused by tall buildings.
• You're opening up a can of worms when you say `this building should be this high, and
this building should be something else.'
.
.
• Open up the Concert Hall Plaza area; use that space as a skier drop-off.
• Concert Hall Plaza could benefit as a redevelopment area; would make a nice movie
theatre or entertainment complex.
• Is VA talking about redevelopment of the tennis courts?
• There is great difficulty in redeveloping anything in Lionshead due to condo association
declarations.
• For the most part, the plan is good; lots of hard work on behalf of the project team really
shows.
~
. , ID: JAN 09'01 4.02 No.001 P.02
1998 Town Counci! lntervfews
AIPP Questions
What vaiue do yau feel public art brings to the community?
. How Can we more effeCtively educate the community regarding the merits of
Art in Public Places?
Who should be responsible for funding pubiic art?
Do you have any past experience with other public art boards?
What skills / resources do you bring to ihis board?
- Fundraising experience.
- Ability with public relations.
- Knawledge of the current art market.
- Cantacts within the art community (loan artwork for the Tamporary Art
Program.)
~ Understanding of how ather municipal art pragrams are structured
(Percent for Art Programs.)
- Patience and enthusiasm for the process.
- Time and energy.
Are you prepared ta make the necessary time commitment to this board?
TRISH KIESEWETTER
Friday, February 20, 1998
Lorelei Donaldson
Town Clerk
Town of Vail
75 S. Frontage Road
Vail, CO 81657
Dear Ms. Donaldson;
I writing to you to formally express my interest in continuing to serve on
the Art in Public Places for another term. I have been a member of the board
since April of 1996.
I run my own freelance marketing, advertising and freelance writing busi-
ness and the majority of my clients and work is done in the Town of Vail. The
main focus of my work has always been in promoting the arts in Vail and for that
reason I have found serving on the Art in Public Places board very rewarding. I
have been involved in the Siebert Plaza project since its inception and want to
be able to help in seeing this project through to completion.
I have enclosed a resume as part of my formal application for the posi-
tion. Should you need any further information, please do hesitate to call me at
either number listed on the resume.
Thank you for your help with my application and I look forward to the
interview with the Town Council on Tuesday, March 3, 1998.
Sincerely,
~ .
t':.
Trish KiesewEtter
BOX 1996 • VAIL, COLORADO 81658 9 PHONE/FAX (970) 845-8619
Trish Kiesewetter Home (970) 845-5075
Box 1996 Office (970) 845-8619
Vail, Colorado 81658
EDUCATION:
5/78 University of Virginia, Charlottesville, Virginia
M.A. English
5/73 Trinity College, Hartford, Connecticut
B.A. English
6/69 The Ivladeira School, Greenway, Virginia '
Graduated
EMPLOYMENT:
1/904/96 V3ii Trail Newspaner, Vail, Colorado
Editor arts, entertainment and lifestyle section. Completely redesigned, renamed
and launched new pull-out section.
9/8742/89 Tattered Cover Bookstore, Denver, Colorado
Bookseller in the business section.
Wrote a book on entertaining titled I Can't Do It-Cal1 the Caterer.
10/83-4187 Take Me Home, Denver, Colorado
Established and managed own catering, box lunch and retail take-out business.
11/81-9/83 People Magazine, Denver, Colorado
Correspondent for the Denver bureau covering stories in a five-state area.
Freelance writer/reporter doing articles for USA Toda_y, Geo, Life, Science 82,
Rocky Mountain Magazine and Colorado Homes and Lifestyies.
7/79-8/81 Science 81 Magazine, Washington, D.C.
Picture editor. Responsible for the photographs in both the magazine and all
promotional material. Commissioned all photography. Founded and headed the
photography department, including drawing up the annual photography budget
and approving all related invoices.
10/78-6/79 Freelance writer/editor for the Washington Star and a public relations firm which
writes newsletters, promotional material and articles for trade associations.
6/78-9/78 Promotion Department, Time/Life Books, Alexandria, Virginia
Freelance editor for special project, catalogue caption writer, assistant in making
TV commercial. 2/76-7/76 Time/Life Films, New York, New York
Writer/reporter for water bird book in Wild, Wild World of Animals series.
11/75-1/76 Home Box Office, Time Inc., New York, New York
Associate editor and layout assistant for promotional program guide.
5/74-10/75 Time/Life Books, New York, New York
Assistant picture editor and caption writer for American Wilderness book
series, conceived and assisted in inirial layout for brochure of series on sports,
researcher for promotional flier, researcher for book series Boating and The
American Wilderness.
References, writing samples and portfolio provided on request.
D~~-~~ ~
6e- ag?el
. ~
P~-c.c~
/ •
v?~~GU~ ~ ~i~ wa~~ ~ , ,
. .
~ ~~?~.~~~~c.e~ ~~c ~ y
~
~
p1 Y7~ 13 S~C~
peel/langenwalter architects, I.I.c.
david mark peel, a.i.a.
kathy tangenwalter, a.i.a.
2588 arosa drive
p.o. box 1202
vail, co 81658
970-476-4506
970-476-4572fax
February 25, 1998
Vail Town Council Members
Town of Vail
75 South Frontage Road West
Vail, Colorado 81657
Dear Council Members;
My first appointed term to the Art in Public Places Board is coming to a close.
During my three year term, the AIPP program has come from neglect and
abandonment to resurgence.
The relocation of the program from the Community Development Department to
Public Works has been positive and appropriate. With the assistance of our AIPP
coordinator, Nancy Sweeney, the board is now in a position to realize our goals.
I would appreciate the opportunity to continue on the AIPP board, to work toward
the completion of the Seibert Circle project, and to help instigate new programs and
projects. Thank you for your consideration.
Yours truly, -
Kathy L ngenwalter
!
rl.~ 5 G . ~7~N T~. ~D
~X~-tc.. ~ a!(sS'~
1~ 64A,~ COwMu
r
~ 94Y1,1- W424 T`i t-4 CA "(Z> ~R-~,SS r~t~ ~ ~Tf~~ f" t
l
4~Z,o L-1 k r4 c't r4-
?"u
~6v4A-s -f h -i',+c- GovW?~ 1,ji-r-i-1 `C~t*_ ~t-4 r1E.^t r c~
1-6,6N~-, ~t. C.-~_ ~s'"--•~" -'E-ccn~ ~ qns~'-~ ~
HiAffl~ M Car4 nnltA-~. C)r..t Pts
90~~wt iry rs
0
-T~?L Frs~ Cert ~u o~,~ c~ r~- ~c- s~t~n~-~2
aI,.~ Tt4f_- +4-1~0 6MkR4'-') .
-brk.~;.e''~-`.l ~
JAN 09'01 4:02 No.001 P.02
w,
L4~~A-A CYIe 3 3c* a.-~
` rvue AAS GL e4e'-) L~.t.2 a'-A iA-
j
~ l~
~v~u.~' ~ ~.c.~-t;cr c~
1998 Town Council intervfews
~
AIPP Questlons
What value do you feel pubiic art brings to ihe community? t4~
Ua. c-A-'P~Y h; ~y aA'-l
CZ-1i CIN,.,a c~,.~"
. How can we more effectively educate the community regarding the me rts of
Art in Public Places? `(-L_, C,IZ
C~~u--u3c~ ~t~..~ C•-,r~,...t~.~;,,,._ e~l~+~.~v~ . ~1
Who should be responsible for funding pubiic art?
itES4,ni,- o_
D~8 you have any ast experience with other Public art boards?
1~r2A~-~ i n~.ti S~-J u c..y c.,. ~-I~ ~'~:.1 ~Lc ~~(L~c.~, l~,ti?c-~.
U
What sk;ils / resources do you bring io this board?
- Fundraising experience.
- Ability with public relations.
- Knowfedge of the current art market.
f Cvntacts within the art community (loan artwork for the 7emporary Art
rogram.) !~:7~ks -4 cJv~- ~ ~..•u~,-Wl-k.<,~w~&,,, a Re~~dJ ~r).A.M.~.
Understanding of how other municipal art programs are structured
, ercent for Art Programs.) ~T G4A.V---j
Patience and enthusiasm for the process.
t/ Time and energy.
Are you prepared ta maice the necessary time commitment to this board?
' ~
LL5,_ U , ~
J7
K, crc,Ac
10064'j
~
03/02/1998 15:56 8169316963 KOSLOFF AND PARTNERS PAGE 02
..r;
: ' • •
~
ALaN w. xosLOFF :
416 Forest Road
Vail, CO 81657
970-475- 1340
.
March 2, 1998
. Ms. Lorelei Donaldson
Town Clerk
755 Frontage Road Vail, CO 81657 .
Taear Ms. Dottaldson,
The foilowing is in respvnse to tfie 199$ Town Council intezview! questions regarding tlie
f1rt in Public Places board.
VVhat value do you feel public art brings to the community? :
BuiIdings and people are the heart af $ny community. public art is the soui. Public art heips develap a sense of pride and accotnplishment. The quaii#y of .
life is enhanced by wetl chosen and. appropriate art. most 'major citids i.n the U.Sa maintain a public act program. T'hey recognize that the city or
village is where people gather to enjoy Iife and publie art is an impottant
element in providing an attractive and rnixturing environment.
How can we more effeetzvely educate the commumty regarding tlie merits of Art in
Public Piaces7
We can more effectively educate the cammunity regardin'g the merits of public
Art by opening the process as much as possible $nd inclurling tepresmatives
f'rom all parts af the community. public art shou.ld be "elebited" by the people or their representadve and not r.lxosen by the elite. 'VVhen people are more.
famitiar with the process they become much mare comfort61s and a,menable
to Public Art and recogruze the value.
Who should be respansible for funding public art?.
The public should take the lead in funiiing public att, but fi~e private sector
neerfs ta play a role by heIping ta create a gositive environdient and praviding
financiaJ support. The grivate sector benefits when ihe comrntutity is
cnhanced with pubiic art and its contcibution is.esselttial_
;
;
.i
03/02I1998 15:56 8169316963 KDSLOFF AND PARTNERS PAGE 03
. . . . . -::`r.: ~.7 . . .
. . . ^L`' . .'i' . . _
. . . I'. . .
Do you have any past experience with other pubtic art boards? ~
Five years ago i was appointed by the. Mayor to serve oin the Mnnicipal Axc
Commission of Kansxs City, Missourz. During this pea-iod I chaired and
served on committees to advance publ1c art and to maintain exccllerice in
architecture and photography.
What skills/resources do you brirzg to this board?
I have extensive fund raisjng experience wtth such divers6 argani:zations
as the Kansas City Pllitharmonic, the Jewish Community Faundatiott
and the Kansas City Camerata. My knowleclge of t,he curtent art market is
quite broad since i have $ priv$te art collectibn ancj keGp up with the curTnt
maTke# through art publica#ions and exhibitions throughqut the country,
I have comaczs within the arteornmunity thraugh my inter'est as a coltector.
The Municipal Art Commission of Kansas City.has a I'/o Art progtam artd
I have worked with the progam for five years and am f~miliar with haw
otrter cities work within that grocess.
I do h,ave patience, enthusiasm, time and energy for th}s ptocess. I have visited
and lived in Vai1 for more than 20 years and understanti the community well..
I woutd like very much to be part ofenhancing the comm: unity through public
art.
A.ce you prepared to make the necessary time commitment to this board? .
We naw live much of the year in Vail_ t
do have an exteragive travel schedule,
however, I do not believe that would irrterfexe with the respdr?sibilities vf the Art in Public Places board,
you for your cor~sideration, ;
kan W osioff
I
:
. g
~
COMMON GROUND
A PLAN FOR VAIL'S COMMUNITY NEEDS
Outcome: To identily a permanent funding source for housing, as well as
a siting package for Vail's housing, parks, public facilities and
open space needs by June 30,1998.
Givens
1) Final decision will be made by TOV Council for the community good.
2) Funding sources for affordable housing will be identified and implemented.
3) TOV will fill the role of facilitator in providing housing; the Town of Vail will
consider using the following strategies as well as others to fulfill that role:
--land provision/site acquisition, including existing units
--facilitator/incentivizing
--site-specific subsidies
--regulator/approval of projects
--condemnation for public use
--service provider (police, fire and transit, etc.)
4) Process is open to all who want to participate; however, Council must be most
responsible to Vail interests, residents, employers, employees.
5) Because failure to have a time line has, in the past, resulted in failure to resolve
the housing problem, the Town of Vail has set June 30 to have these funding
and siting decisions made so a project(s) can be underway in 1998.
6) All housing projects that are already underway will proceed.
7) All ideas for public uses are welcome.
8) All sites, both publicly and privately held, and funding sources will be considered
in the context of the overall community good. All participants will be encouraged
to look at community-wide impacts rather than site-specific impacts.
9) !n making these decisions, compromise will be necessary.
10) Some currently undeveloped public lands will be developed for community
purposes.
11) Land within designated open space will not be used for (check charter
language).
12) The process will focus on projects that affect land use and will not address
related issues such as maintenance or operations.
13) So that the Town of Vail can be held accountable for responsibiy addressing the
critical affordable housing shortage, it has set a target of having 62 percent of
our community's employees living within the Town of Vail; the Town of Vail will
facilitate the construction or acquisition of affordable housing units until that
target is reached or the crisis is averted in other ways.
3 '
J COMMON GROUND
A PLAN FOR VAIL'S COMMUNITY NEEDS
STEP 1 2/8 to 3/23
TOV Determines...
~ General estimate of funding needed to accomplish housing goal (see given)
• Inventory of potentiaf sites .
• Test process steps an focus group • Draft list of criteria to evaluate funding options • Draft list of criteria to evaluate siting alternatives (2/8 to 3/1) STEP 2 3/1 to 4/16
Community...
• Identifies community uses and needs
• Generates ideas for funding sources
• Responds ta criteria for funding and siting
"Anything that should be a criterion? Anything missing?"
Methods
--Mailed survey 311 to 413
--Interviews
--Combined open house/forum/workshops 4110 to 4116
CHECK POINT- REVIEW PUBLIC INPUT AND RE-EXAMINE PROCESS
AND DETERMINE IF PUBLIC FACiLIT1ES SITING PROCESS NEEDS EXTENSION
COMMUNICATE ALL INFORMATION TO DATE
8TEP 3 4/20 to 5/22
TOV.:.
• Applies criteria and identifies funding options
• Applies criteria for siting and develops multiple comprehensive packages of
maps addressing each of the four categories of need
STEP 4 /1 0 6!
Community Responds to...
• Funding options
• Siting Alternatives
"What do you like about the options/alternatives and why?"
Methods
--Public Workshops
i
9 TEP 5 /10
CHECK POINT- REVIEW PUBLIC INPUT AND RE-EXAMINE PROCESS
(This is an interna/ TOV assessment of the process, to date, fo confirm
that the process schedule can be met.)
COMMUNICATE ALL INF RMATION TO DATE
TEP 6 6/8 to 12
, . TOV Develops... . ,
" • Final funding package • Final siting plan TEP 7 6/12 to 6/25
Community opportunity for...
• Final response
"Here's what you said. Here's what we did. Here's what we're about to do."
Methods --Newspaper ad
--Informationa/ mailing
STEP 8 6(3Q
Vail Town Council...
• Acts on funding and siting packages forwarded for action
NEXT STEPS: IMPLEMENTATION PRODUCTS
A
MEMORANDUM
TO: Vaii Town Council.
FROM: George Ruther, Senior Planner
DATE: Ma.rch 3, 1998 .
_ SUBJECT: Discussion of the proposed major amendment to Special Development District #4, -
and the discussion of the development review process for this request.
1. DESCRIPTION OF THE REQUEST
The applicant, Jerry Wurhman, is requesting a major amendment to Special Development
District #4 (Cascade Village) pursuant to Title 12, Chapter 9A of the Town of Vail
Zoning Regulations. The major amendment is intended to modify a 1995 major
amendment approval for the Westhaven Condominiums, located at 1325 Westhaven Drive
(the "Ruins"). The applicant is proposing to amend the 1995 Westhaven Condominium
approval to a11ow for the operation of a fractional fee club. The new fractional fee club is
proposed to include:
• eleven, two-bedroom, fractional fee club units with eleven lock-offs,
• four, one-bedroom accommodation units, and
• twenty, one-bedroom employee housing units.
The previous approval allowed for the construction of fourteen free-market condominiums
and seventeen employee housing units. At this time, only minor alterations are anticpated
to the exterior of building and a11 other development standards a.re proposed to remain
substantially unchanged.
The applicant is currently scheduled to appear before the Planning and Environmental
Commission on Monday, March 9, 1998, for a worksession discussion of the proposal. A
final review will occur at a later date.
U. BACKCTROUND
• On April 19, 1995, the Vail Town Council approved a major amendment to Special
Development District #4. The amended development standards approved by the Town
Council are compared to the oriainal SDD approval and are listed below:
1
~
DEVELOPMENT STATI TICS
Lot Area: 0.85 acres or 37,026 sq. ft.
Zoning: SDD #4 (Cascade Village)
Development Standard Oriainal SDD Approvai 1995 Approvai
Height: 55' 55'
GRFA: '
Free Market: 22,500 sq. ft. 25,644 sq.ft. EHiJs: 6.400 sg. ft. 8?96 sa.ft.
Tatal: 28,900 sq. ft. (78%) 33,940 sq.ft. (92%)
Common Area: 10,115 sq. ft. (35%) 3,417 sq. ft. (11.8%)
Density:
Free Market: 20 dwelling units 14 dwelling units
EHLTs: 10 EHUs 17 E s
30 total units 31 total units
Setbacks: 20' 24'
Site Coverage: 35% (12,959 sq. ft.) 36.7% (13.598 sq. ft.)
Landscaping: 50% (18,513 sq. ft.) 47.9% (17,767 sq. ft.)
Retaining Wa11s: 376' none proposed
Parking: 75% shall be enclosed 82% shall be enclosed
44 total spaces 45 total spaces
Employee Housing: minimum of 8 units; 17 EHLTs, similaz to
minimum of 648 sq. ft. each; Type III restrictions
should not count towa.rds
density or GRFA
An analysis comparing the 1998 proposal to the original and 1995 approvals will be provided at a later date.
III. DEVELOPMENT REVIEW PROCESS
Pursuant to Section 12-9A-2 of the Municipal Code, in part, a major amendment is defined as,
"Any proposal to change uses; increase gross residential floor area; change the number of dwelling or
accommodation units; modify, enlarge or expand any approved special development district."
Since the applicant proposes to change the uses and change the number of dwelling and accommodation
units, staff has identified the applicant's request as a major amendment.
2
~
,
In accordance with Section 12-9A-4 A-C of the Municipal Code, an approved development plan sha11 be
required prior to construction. The approved development plan shall establish requirements regulating
development, uses and other activities in the special development district.
Additionally, the applicant shall be required to hold a pre-application meeting with the Community
Development Department prior to submitting a formal application. The purpose of the meeting shall be to
discuss the goals of the proposed special development district, the Town's Master Plan and the review -
procedure which will be followed for evaluating the application. Further, the Planning and Environmental Cominission sha11 conduct the initial review of the amendment to
the special development district. The review shall take lace at a re
the Planning and Environmental Commission's review, he Community Development Departmet ~ hall ng
forward a report to the Town Council stating the PEC's findings and recommendations on the amendment
request. The Town Council shall then review the application based upon the information submitted. An
approval of the application by the Town Council shall require two readings of an ordinance.
III. STAFF RECOMMENDATION
The sta.ff is recommending that the above-described procedure be followed in reviewing the applicant's
major amendment to Special Development District #4. The staffwould further recommend that the Town
Council provide any direction they may have, at this time, regarding this amendment to the applicant, staff
and Planning and Environmental Commission. Additional opportunities for Council input will be provided
during regularly scheduled PEC Reports to Council or joint worksessions, if deemed necessary by the
Council. Staff anticipates that the regularly scheduled PEC Reports would include staff memoranda, full-
size plan sheets and additional time on the agenda, if requested.
~
~
~
VAIL TOWN COUNCIL MEETING--MINUTES
TUESDAY, FEBRUARY 3, 1998
7:30 P.M.
A regular meeting of the Vail Town Council was held on Tuesday, February 3, 1998, at 7:30 P.M.
in the Council Chambers of the Vail Municipal Building. The meeting was called to order at
approximately 7:30 P.M.
MEMBERS PRESENT: Rob Ford, Mayor
Bob Armour
Sybill Navas
Kevin Foley
Mike Arnett
MEMBERS ABSENT: Ludwig Kurz
Michael Jewett
TOWN OFFICIALS PRESENT: Bob McLaurin, Town Manager
Tom Moorhead, Town Attorney
Pam Brandmeyer, Assistant Town Manager
The first item on the agenda was citizen participation. Sue Dugan, a West Vaif resident and
native of Australia, stated she had just returned from a visit to Australia and would like to make a
presentation to Council at a future work session date to share materials and photographs she
collected regarding the function and design of roundabouts in her home country
The second item on the agenda was the consent agenda to approve the minutes from the
meetings of January 6 and 20, 1998.
Counciimember Bob Armour made a motion to approve the minutes of January 6 and 20, 1998
and the motion was seconded by Councilmember Michael Arnett. A vote was taken, there was
unanimous approval, 5-0.
The third item on the agenda was a presentation to the Mayor and Council by Mt. Builer
students, Amy Jakolew and Edwina Sigmund. The students thanked the Town of Vail for their
hospitality and presented Mayor Rob Ford with a letter from the manager of the Deiatite Shire in
Australia.
The fourth item on the agenda was Proclamation No. 1, Series of 1998, a Proclamation honoring
Vail residents Chad Fleischer, Sacha Gros, Sarah Schleper, and Barrett Christy as 1998 U. S.
Winter Olympians. Pam Brandmeyer read the proclamation.
Councilmember Bob Armour made a motion to approve Proclamation No. 1, Series of 1998, the
motion was seconded by Sybill Navas. A vote was taken, there was unanimous approval, 5-0.
The fifth item on the agenda was a presentation by Mike Gallagher, Chairman of the Eagle
County Regional Transportation Authority (ECRTA), representing the Eagle County Regional
Transportation Authority; Jim Shrum, ECRTA Director; and Vicki Maddox, Financial Adviser,
1
Senior Vice President of George K. Baum & Company.
Mike Gallagher, chairman of the Eagle County Regional Transportaticn Authority, made a
presentation and requested the Council to continue its five-year funding commitment to ECRTA.
The authority has asked the town for an $86,000 contribution in 1998. the same as the 1997
request. Requests also have been asked this year of the other original funding partners: Town of
Avon, $62,500; Beaver Creek Resort Company, $225,971; and Eagle County, $75,324.
Gallagher said it was the board's hope that Vail would continue its ccntribution to set the
example for the other entities. Several entities have questioned the need to continue the five-
year funding commitment, launched in 1996, because of heaJthier than expected sales tax
collections (which funds the bulk of the system). In response, the authority's director, Jim
Shrum, outlined a list of upcoming capital expenses that he said documents the need for
continuation of the piedged funding, which totais $450,000 for 1998. Those projects include land
acquisition and construction of a$10 miilion maintenance facility; consiruction of 50 bus shelters;
and repiacement of haif the system's fleet. Shrum said the authority crefers to pay cash for the
capital improvements as opposed to financing options, which officials said couid end up doubfing
the cost of the pro}ects.
Rob Ford asked that the Council revisit the funding on a yearly basis.
Bob McLaurin stated this is a yearly contribution over 5 years and is r:Ct a 5-year commitment.
Councilmembers Kevin Foley and 8ob Armour expressed support for'lail's continued funding.
Councilmember Sybili Navas asked for additional information and war;.s to see more specific
cost figures before making a decision.
Councilmember Kevin Foley requested and the Council agreed to posmone its vote on the
funding issue untii ali seven Councii members are present.
Mayor Rob Ford thanked Jim, Mike and Vicki for their presentation ancwill wait until the all
seven members of Council are present before voting on this item.
The sixth item on the agenda was an update by the Vail Tomorrow Buiiding Community Team
represented by Stan Cope.
Stan Cope, representing a sub-team of the Vaii Tomorrow Building Community team,
provided an update regarding the group's interest in pursuing a commurity center for Vail.
Construction of a community center is one of 40 Vail Tomorrow actions endorsed by the
community. Cope said the sub-team is being formed to identify potentiai partners for such a
facility and to involve the community in generating a list of "wants and needs." He said the group
would be returning to the Council soon to propose a grassroots, consensus-building community
coilaboration process that would move the issue forward with the goai ct enhancing Vaii as a
community. He said the Councii also would be asked to help share the Cost of the process.
Another potentiai partner, he said, is the Vail Recreation District (VRD).
Kirk Hansen, a VRD board member, acknowledged VRD's interest and,,viilingness to participate
in a community dialogue.
2
~
f ~r
Councilman Bob Armour, warned that the town, whether it be requests for an aquatic center,
bowling alley, etc., wiil be unable to fulfiii everyone's wish lists and there are funding constraints.
Councilmember Sybill Navas, who's been attending the sub-team meetings, said it will be
important for everyone to agree on how decisions will be made up front to avoid problems later
on. She also stated that the idea of a community center came from a few teams wish list, not
just the Vail Tomorrow Building Community team.
Mayor Rob Ford thanked the group for taking the project on and asked that the Council be
apprised of the group's activities so as not to duplicate efforts.
The seventh item on the agenda was a presentation by the Vail Tomorrow Affordable Housing
Team represented by Kent Rose.
Kent Rose, a member of the Vail Tomorrow Affordable Housing Team, thanked the
Council for its commitment to work with the community to identify a permanent funding source
for housing by May 1. Kent Rose said the team wished to lend support for consideration of
reallocating up to 50 percent of the real estate transfer tax (RETT) revenues. He also asked if
the Council had any tasks it wanted to hand off to the team, now that the group has identified
and forwarded, through Vail Tomorrow, its recommendations on potential housing sites as well
as other methods to increase Vail's housing inventory. He also stated the Vail Tomorrow
Affordable Housing Team would like Vail Associates to continue to support and provide for their
empioyee needs.
Mayor Rob Ford said the Council is committed to looking at all potential funding sources above
and beyond the RETT tax. He stated the town will initiate a process to present to the public to
address RETT fax, similar to the West Vaii interchange process and May 1, 1998 is the deadline
date to have a process in place.
David Corbin, representing Vail Associates (VA), speaking on behalf of Jack Lewis, who heads .
up VA's housing program, described VA's role in development of the RiverEdge project in Avon
and offered the company's full support and participation in constructing similar developments in
Vail. He also stated he would like to see other private entities participate in this effort.
Stan Cope, a business manager, aiso spoke to Council and asked that private sector
participation be extended to some of the smaller businesses, as well.
Chuck Ogilby, a member of the housing team, complimented the Council for its housing
commitment and asked that Council use its political will to overcome the wave of NIMBYism that
will likely occur as a result of the effort. Chuck Ogilby also asked the Council to consider an
incentive program that would make it worth his while to continue making his unrestricted
employee housing units available to locai employees in the future. He also encouraged the
Council to consider inclusionary zoning and to buy existing units to help accelerate the supply of
deed-restricted units.
Mayor Rob Ford stated that the town wants to enter into a discussion with Timber Ridge owners
to maintain and preserve it as locals housing. The Council is also looking at buildings with
3
~
caretaker apartments to be used as local housing and encourages additional caretaker units to
be used as locals housing.
Rob LeVine, a member of the Lionshead Merchants Association, said he, too, appreciated
Council's commitment. He asked Council to be "leaders" in the process, not "listeners", and
supported spending RETT funds for this process.
Anne Esson, a member of the Vail Tomorrow Affordable Housing Team and East Vail resident,
noted that only a small portion of RETT is actually used for open space acquisition.
Kaye Ferry, a member of the Vail Village Merchants Association, said the Vail Village Merchants
Association January, 1998 meeting was about housing issues. She stated the most critical need
is for seasonal housing within Vail's boundaries.
The eighth item on the agenda was first reading of Ordinance No. 2, Series of 1998, an
ordinance amending Section 1-5-11A Establishing the Time of the Town Council Regular
Meeting Dates.
Tom Moorhead, Town Attorney, stated the ordinance was drafted at the request of Council.
Council wanted an ordinance amending the time of the regular meeting which is presently set at
7:30 p.m. The ordinance as drafted will allow each Councii to consider the appropriate starting
time at its organizationai meeting foliowing the biennial Council elections, which can then be
approved by resolution so the Municipal Code does not have to be recodified each time.
Councilmember Bob Armour made a motion to approve Ordinance No. 2, Series of 1998 on first
reading, and the motion was seconded by Councilmember Kevin Foley. A vote was taken, there
was unanimous approval, 5-0.
The ninth item on the agenda was seconding reading of Ordinance No. 1, Series of 1998, an
ordinance amending Title 12, Zoning Regulations, Section 12-7c-5(a)(3), to Waive the Major
Exterior Alterations Application Deadlines for 1998 for the Lionshead Redevelopment Master
Plan Study Area.
Dominic Mauriello, Town Planner, expiained the purpose of the ordinance was to change the
deadline dates for major exterior alterations in Lionshead, CCII Zone District. The deadlines are
currentiy scheduled for the fourth Monday in February and the fourth Monday in September.
Dominic stated the Town is currently engaged in stage 3 of the five stage Lionshead
Redevelopment Master Plan process. The plan is at a crucial stage where issues of buik and
mass are being studied and recommendations are being formed. Staff believes it will be
detrimental to the master planning process to have property owners submit redevelopment
proposals in the Lionshead Study Area before issues of bulk and mass have been determined.
Staff believes that the Town should allow the master planning process to proceed and at the
same time allow potential applicants more flexibility with submittal deadlines in 1998.
Tom Moorhead stated this was a temporary moratorium issue and shouid appiy to ail zone
districts within the Lionshead study area. He also stated the time restrictions are of a
reasonabie duration to June 1998.
4
~ ~ .
Mayor Rob Ford clarified that this ordinance was drafted due to Lionshead Master Pian and does
not support a moratorium of the deadline date.
Councilmember Mike Arnett stated that this request should apply to all zone areas not just
Lionshead.
Councilmember Sybill Navas agreed with Mayor Ford and doesn't like the moratorium aspect of
the ordinance.
Councilmember Sybiil Navas made a motion to approve Ordinance No. 1, Series of 1998, with a
change deleting the submittai deadlines. The motion was seconded by Councilmember Kevin
Foley. Further discussion ensued. A vote was taken. Councilmembers Mike Arnett and Bob
Armour dissented. The motion did not pass.
Councilmember Kevin Foley made a motion to table this item, Councilmember Bob Armour
seconded the motion. Motion withdrawn.
Mayor Rob Ford asked for another motion.
Councilmember Mike Arnett made a motion to approve the second reading of Ordinance No. 1,
Series of 1998 with the modification that the submittal deadlines for CCI and CCII zone districts
be eliminated for the 1998 calendar year so that both zone districts would be treated equitably
and fairly. This motion was seconded by Counciimember Kevin Foley. A vote was taken, there
was unanimous approval, 5-0.
The tenth item on the agenda was a Loading and Delivery update.
Police Chief Greg Morrison updated the Council on loading and delivery during the Holidays. He
stated there because of staffing shortages, it was difficult to man Checkpoint Charlie and the
temporary road biock on Hanson Ranch Road effectively. The experimental barricade concept
at Hanson Ranch Road was installed during the morning and afternoon peak periods during a
21-day period over the holidays to discourage use of the area for skier and employee drop-off,
which had been clogging up loading and delivery operations.
Chief Morrison said the effort was successful in defending the 10 parking spaces for delivery
trucks, but stated the drop-off problems were disptaced to other neighborhoods. Morrison aiso
described current obstacles in hiring additional personnel to staff the barricade. He said the
department has been understaffed in the code enforcement division ail season long due to the
lack of applicants.
Councilman Michael Arnett suggested looking into an automated system that would control traffic
on Hanson Ranch Road.
Chief Morrison stated an automated system would solve some problems but create new ones
such as the probiem of getting a code out to different people needing access, it would be labor
intensive.
Chief Morrison stated a reorganization of the code enforcement division, which includes a
5
proposal to add animal control to its services (now being contracted with Eagle County), will
improve current staffing levels by converting seasonal positions to fuil-time positions.
Jim Lamont, of the East Village Homeowners Association, requested the barricade experiment
be continued, as well as increased enforcement in the other neighborhoods, to fulfili the town's
commitment to help with traffic flow coordination at the Golden Peak ski base during its first year
of operation.
Diana Donovan, a long-time resident, said she opposed preferential treatment on pubiic streets
and said she is opposed to the concept of gated neighborhoods in Vail.
Chief Morrison made a recommendation to Council to keep Checkpoint Charlie manned 7 days a
week, from 7 a.m. to 7 p.m. through April 12.
Councii agreed ta continue increased staffing at Checkpoint Charlie (7 a.m. to 7 p.m.) at least
through April 12 to improve coordination of loading and delivery in the Village.
The eleventh item on the agenda was the Town Manager Report.
Bob McLaurin had nothing to add to his report.
Councilmember Kevin Foley suggested the town staff go to the next Vail Village Merchant
Association meeting and inform them about the upcoming public and private construction
projects that are planned for the Viilage during the spring and summer.
As there was no further business, Councilmember Mike Arnett made a motion to adjourn,
Councilmember Kevin Foley seconded the motion. A vote was taken, and the motion passed
unanimousfy, 5-0.
The meeting adjourned at approximately 10:00 p.m.
Respectfully submitted,
Robert E. Ford
Mayor
ATTEST:
Lorelei Donaldson
Town Clerk
6
a
i
VAIL TOWN COUNCIL MEETING MINUTES
TUESDAY, FEBRUARY 17, 1998
7:30 P.M.
A regular meeting of the Vail Town Council was held on Tuesday, February 17, 1998, at
7:30 P.M. in the Council Chambers of the Vaif Municipal Building. The meeting was
called to order at approximately 7:30 P.M.
MEMBERS PRESENT: Ludwig Kurz, Mayor Pro-Tem
Bob Armour - '
Sybill Navas -
Kevin Foley
Mike Arnett
Michael Jewett
MEMBERS ABSENT: Rob Ford, Mayor
TOWN OFFICIALS PRESENT: Bob McLaurin, Town Manager
Tom Moorhead, Town Attorney
Pam Brandmeyer, Assistant Town Manager
The first item on the agenda was citizen participation. There was no citizen participation.
The second item on the agenda was a discussion and First Reading of Ordinance No. 3,
Series of 1998. A request for a major amendment to Special Development District #30
(Vail Athletic Club), to allow for a change in the number of dwelling units/accommodation
units, modifications in common area square footage and GRFA, and an ordinance
modification of the EHU timing requirements.
Mike Mollica, Assistant Director of Community Development presented this item to Council. Mike stated there were five salient points to this ordinance which were in the
Planning and Environmental Commission (PEC) memo given to Council. Staff had
concerns about the expansion of the building envelope. Staff recommends approval of
the changes to the ordinance except for the 62 square feet of GRFA. There is also an
error in the ordinance on page 3, regarding the density. It should read 54
accommodation units not 55. Also, on page 4, item 8, the final numbers for the GRFA
and common area are not available at this reading. Staff will have the accurate numbers
prior to second reading. The plans call for the elimination of two accommodation units,
the conversion of one two bedroom dwelling unit to a"presidential suite" accommodation
unit, and the expansion of one dwelling unit.
Councilmember Bob Armour asked if the 4th floor unit will be an accommodation unit
instead of a dwelling unit.
Mike Mollica stated that was correct.
1
e
Stan Cope, representing the Vail Athletic Club, explained the 5th floor modification does
not change the roof line, the change moves the wafl out and fills in under the eave line.
Overall, the Vail Athletic Club would have a total of 54 hotel rooms, 3 dwelling units and 4
employee housing units.
Jim Lamont, representing the East Village Homeowners Association, stated that SDD's
are controversial and would like to see that SDD's have substantial compliance before
going through PEC. -
Councilmember Mike Arnett made a motion to uphold tfie PEC decision and made a .
motion to approve Ordinance No.3, Series of 1998 on first reading with the changes on
Page 3, Section 5, change the accommodation units numbers from 53 to 54 and to
provide the GRFA numbers by second reading and the changes on Page 5,
accommodation units numbers from 53 to 54. The motion was seconded by
Councilmember Kevin Foley. A vote was taken, there was unanimous approval, 6-0.
Councilmember Kevin Foley welcomed Boy Scout Troop #231 to the Town Council
meeting.
The third item on the agenda was second reading of Ordinance No. 2, Series of 1998
amending Section 1-5-11A Establishing the Time of the Town Council Regular Meeting
Dates.
Councilmember Bob Armour made a motion to approve Ordinance No. 2, Series of 1998
on second reading, the motion was seconded by Councilmember Sybill Navas. A vote
was taken, there was unanimous approval, 6-4.
During discussion, Councilmember Sybill Navas wondered if Councilmembers would
consider a 6:30 p.m. start.
Tom Moorhead will prepare a Resolution specifying the 7 p.m. start time (30 minutes
earlier than the existing start time) effective March 17, 1998. The new start time will be
determined during discussion of the resolution on March 3.
The fourth item on the agenda was Resolution No. 4, Series of 1998, a Resolution
Adopting the Intergovernmental Agreement Between and Among the Towns of Avon,
Basalt, Eagle, Gypsum, Minturn, Red Cliff and Vail, Colorado (Municipal Corporations and
Political Subdivisions of the State of Colorado), to Employ Joint and Cooperative Efforts
With Eagle County to Obtain the Mutual General Goals of the Efficient, Well Ordered and
Economic Provision of General Government Services and the Mitigation of the
Disagreeable Impacts of Uncoordinated Growth.
Bob McLaurin stated various municipalities within Eagle County met with Eagle County to
address managed growth concerns throughout the county. The agreement encourages
2
s
the "concentration of planned and needed growth and density in municipalities where
such growth is more efficiently and cost-effectively served by centralized infrastructure
and services and where its location will help preserve open spaces and agricultural land;
and coordination of land use decisions between the county and municipalities within
those areas identified by the municipalities and the county within which land use change
will have a significant impact on either the county or a municipality." Also, the agreement
requests a joint meeting with Eagle County officials to increase coordination of the
managed growth issues. Councilmember Sybill Navas made a motion to approve Resolution No. 4, Series of 1998 . and was second.ed by Councilmember Mike Arnett. A vote was taken, there was
unanimous approval, 6-0.
The fifth item on the agenda was the Seibert Circle Arts in Public Places (AIPP) project
approval.
Nancy Sweeney, AIPP Coordinator made a presentation of the Seibert Circle art project.
The Art in Public Places board would like Council approval of the design contingent upon
Design Review Board (DRB) approval on Wednesday, February 18. The design, which
has evolved over the past two years, features a small amphitheatre-like gathering space
in the center of the circle with three vertical granite sculptures designed by renowned
artist Jesus Morales. Also, the project includes a bronze statue of Pete Seibert designed
by Susan Raymond. Nancy Sweeney said the design has been enthusiastically received
by adjacent property owners who have asked that construction be contained to April
through June of either this year or next year.
Nancy explained there was a budget shortfall of $183,000. The shortfall has been
caused by expansion of the proposed streetscape improvements to include private
property (building front to building front), as well as an additional $68,500 for the Seibert
bronze and $5,000 to relocate the fire hydrant, for a total of $73,500. The total
streetscape improvement, which will include heated pavers, is estimated at $800,000.
David Kenyon, with Design Workshop explained the project concept, start of the project,
types of materials, and the changes that were made. The concept is the same, the
changes that have been made is the addition of a bronze of Pete Seibert contemplating
the mountain with plans and the statue is located in front of the Red Lion.
Bob McLaurin explained the request for Council approval was out of the usual order of
the approval process because of neighborhood requests.
Pete Seibert, for whom the circle is named, expressed uncertainty regarding his support
q for the design.
Bob McLaurin stated the Town has tried to involve everyone in this project and to keep in
mind that the town will never get a project everyone is completely happy with. He has
3
~
spoken with Marty Head, a Vail resident, and she stated that this artist is well known and
it will get people to come to Vail and that the price was good.
Ron Riley, an adjacent business owner, encouraged the Council to move forward.
Kaye Ferry, representing the Vail Village Merchant Association, asked that construction
be delayed for a year due to other construction projects in the Village that are already on
line.
- Councilmembers reacted positively to the project's design. '
Councilmembers Michael Jewett and Mike Arnett stated they thought is was a wonderful
project but both questioned using tax dollars for public art. .
Councilmembers Sybill Navas, Michael Arnett and Bob Armour encouraged additional
financial support from surrounding property owners to complete the project.
Councilman Ludwig Kurz suggested moving forward with the project, noting that costs
aren't likely to go down.
Kevin Foley asked if this project was consistent with the Town of Vail Streetscape Master
Plan.
Todd Oppenheimer, Park Superintendent/Landscape Architect, stated it does comply with
the Town of Vail Streetscape Master Plan.
Councilmember Mike Arnett asked if there was a possibility to store the artwork if it could
not be placed prior to July 4th.
Bob McLaurin said that storage could be found.
Bob McLaurin stated he would return to the Council next week with an indication of
private sector funding participation, as well as confirmation of the AIPP's pledge to raise
$70,000 from the community.
The Council will review the project in the context of other capital improvements budgeted
for 1998.
The sixth item on the agenda was an update and funding request from Vail Tomorrow
Community Center Coordinating Team.
Stan Cope, a volunteer member of the Vail Tomorrow Community Center Coordinating
Team, presented an update on the team's progress in advancing the concept of a Vail
Community Center. He said the team has developed a community-based approach that
would identify and prioritize possible components of a community center that would
4
s
A
~
dovetail with a public process currently under consideration by the Council. The larger
process under consideration by the Council would create a siting package for Vail's
housing, parks, public facilities and open space needs, as well as a permanent funding
source for housing.
Stan Cope stated that once a budget is established, currently estimated at $20,000, the
team would like to return to the town to request that it fund half the cost of the public
process, assuming the Vail Recreation District (VRD) funds the remaining portion.
. Diane Johnson, the VRD's youth services coordinator, expressed VRD's support for the -
effort, although the funding commitment still needs to be approved by the VRD board.
Councilmember Bob Armour expressed concern that a wish list effort might result in
expectations that would be difficult for the town to fulfill, given space and budget
constraints.
Councilmember Mike Arnett echoed Bob Armour's concerns.
Councilmember Sybill Navas stated a housing survey may be piggybacked with a
community center survey.
Bob McLaurin explained that a housing survey could possibly be piggybacked with the
town survey, housing and community center survey. Other alternatives could be focus
groups.
Stan Cope addressed the concerns of not "boxing" in the project yet, they may not come
up with a community center that everyone wants. We need to keep our minds open to
what people may want. here are no givens as to what this project looks like at this time.
They need additional data before making any further decisions.
No action was taken.
The seventh item on the agenda was an information update. There was no update.
The eighth item on the agenda was Council Reports.
Sybill Navas noted her attendance and involvement in the Vail Tomorrow Community
Center Coordinating Team discussions, as well as the Seibert Circle neighborhood
meeting.
Kevin Foley issued a reminder regarding the upcoming Vail Recreation District board
election. Nominating petitions for the board are due Feb. 27. Foley also noted his
attendance at an Alpine Garden Foundation fund-raiser and at a Lionshead Master plan
community meeting.
5
i
v
The ninth item on the agenda was discussion on other items.
Councilmember Sybill Navas suggested consideration of a pedestrian crosswalk at the
Municipal Building.
Councilmember Bob Armour announced the upcoming Chamber of Commerce mixer at
the Vail Athletic Club. _ The tenth item on the agenda was the Town Manager Report. Bob McLaurin had no
further information to report. .
Councilmember Bob Armour made a motion for Council to go into an executive session,
and was seconded by Councilmember Kevin Foley. A vote was taken and there was
unanimous approval, 6-0.
As there was no further business, Councilmember Bob Armour made a motion to adjourn,
Councilmember Kevin Foley seconded the motion. A vote was taken, and the motion
passed unanimously, 6-0.
The meeting adjourned at 10:00 p.m.
Respectfully submitted,
Robert E. Ford
Mayor
ATTEST:
Lorelei Donaldson
Town Clerk
6
RESOLUTION NO. 5
SERIES OF 1998
A RESOLUTION ESTABLISHING THE TIME FOR COUNCIL MEETINGS.
WHEREAS, on February 17, 1998, upon second reading Town Council approved
, Ordinance No. 2, Series of 1998, which provides that Town Council shall biennially establish the
time of its regular meetings. NOW, THEREFORE, BE IT RESOLVED by the Town Council of the Town of Vail,
Colorado, that:
1. The Town Council regular meetings on the first and third Tuesdays of each month
shall commence at 7:00 p.m. Mountain Standard Time.
2. Town Council may, from time to time, adjust the starting time as necessary to
meet scheduling requirements.
3. This resolution shall take effect immediately upon its passage.
INTRODUCED, READ, APPROVED AND ADOPTED this 3rd day of March, 1998.
Robert E. Ford, Mayor
ATTEST:
Lorelei Donaldson, Town Clerk
Yc i C.
~ RECFIVED FEB 2 3
1998
I?1e• ~o~~~
~Q;l Go,, i~5 7
bUVi 5 GOJ~ D t ~~OP k3 ~
!J
G~ ~Di nr,- Z-e v~- 5k,,~
'0 c'k A CkQ~ ~ .
(J
4
U
~e C~ ~A
c.e
iA a-¢, irle c, 9 2
~A-e
1 1 G' rp, Oc f 8~~--~
~a;~ Co: 8IG5
7
~ REcOvFa FFS 2 3 ~
~ebra~y 2~, ~uc~g
&yor
~(?wl~ Va' ~ - -
r Vu,Vo glUs~ ' -
As a~ 6~0) Scas~ C~ 4op 231 l c~ HeVA le <a,XIl
1~y v?ew on ~6 ~febv~ Circle b yrea~, 5~e 00~ ''UuIe 4 n~a?ay tis
Z ' k qfAnfQ 565 in510al 0 1 iie
- ~aaalVj y k4uc,
~tii'R~ ~ 94ffln Gfe. C(Nilooce avy~l7~cfm 5J-1hy
~ w.elw- a yle,~ iaPa, G I tVlt-Q, qluq I P S}~us ar~ a nfz Lc~
4~+{ are ~ o4AS vmW5 ~-or 4 ~~t ~ucs ara _
GcmBa,l ts d0% Gr k
Q~ r or Qre,
,
~o~~ ~~;s~-s ~-p~,1 eL?~,r, S c,t~~. -~s uy~e~~,~,
5'i r~cer ~ , - - q2j
Vtl(,C,o g1657
-
~
,
~
~
2 ~ RECEfVED FEg p 3 19% ,
~
201
I aq~"
T5 ~
,
,
~ r~~
7qrrnv_r~r,/ ~ ~ C~J7l L~/! `1~~,~(/, 1.Q/•
&fl4,i
oe-
PO- baX i077
~ v(Aj'1) CG S1656'
f
~ RECEIVED! FE8 2 1 199g
M f, Ro b PQJ
rG wf~ 0~ v.~I 1
c04 ~ -Tcao
on ~ebwa~ ~ 1 ~
`S e `
4-V OV 5~ W~A ive, P\A r1:
Sav~S ! vtYc A)v\e, i JeA 0-~ P~zfi _
s~~p~o~s ~of ~e ~ar~~ ~ Gore ~cee~
eJe
ieQ5" fov\wJ ~j I t'Y1 ~Ok ,r~Pcn't~e-~e'('
4-Ve pe;6~
~
RECEIVED FEB 2 3 1998 i
.
~4t 4231
~i
c~ U
-dA le,.
ftA-t ~
,e,.6L ka
t4
Lr,~
Zk
0
}
~
~ 0~ ~ 22A
~
~ -
~
~y
TOWN OF VAIL
Office of the Town Attorney
75 South Frontage Roarl
Vail, Colorado 81657 . . . , . .
970-479-2107/Fax 970-479-2157
TM
MEMORANDUM
TO: Vail Town Council
Robert W. McLaurin, Town Manager
John Power, Human Resources Director
,
FROM: R. Thomas Moorhead, Town Attorney DATE: February 26, 1998
SUBJECT: Council Compensation
After Council's discussion regarding compensation on February 24th, Bob Armour referred me to
Section 3.8 - Compensation of the Town Charter. That provision states:
"The members of the Council shall receive such compensation and the Mayor such additional
compensation as the Council shall prescribe by Ordinance, provided, however, that they shall
neither increase nor decrease the compensation of any member during his term of office...."
This provision clearly establishes why the Council previously had established the increase in
compensation at a point in the future which would not be during any Council members present term
of office.
I do not believe that Council's motion to allow members to purchase health care is in conflict with
this provision. This provision, however, should be considered for any further discussions concerning
the increase of compensation.
Thank you.
RTM/aw
rAcovncil.ecc
L~~ RECYCLED PAPER
?
u
~y
TOWN OF VAIL
~
Office of the Town Attorney
75 South Frontage Road
vail, Colorado 81657 . . . . , .
970-479-2107/Fax 970-479-2157
TM
MEMORANDUM
TO: Town Council
FROM: Rob Ford, Mayor
DATE: February 26, 1998
RE: 3/3/98 Council Ski Tuesday
For your information, Rob will not be able to ski with the community Tuesday, March 3rd due to
damaged knees.
REF/aw
RECYCLED PAYER
~
u
~y
TOWN OF VAIL ~ . ~
Offcce of the Town Attorney •
75 South Frontage Road
vail, Colorado 81657 . . • . . .
970-479-2107/Fax 970-479-2157
TM
MEMORANDUM
TO: Vail Town Council
FROM: R. Thomas Moorhead, Town Attorney;
DATE: February 26, 1998 `
SUBJECT: Week of March 2, 1998
During the week of March 2nd I will be in Aspen testing the competition's product. I will remain
in contact by telephone and will be available as needed.
Thanks.
RTM/aw
f:\council.mem
RECYCLED PAPEX
. . . _ . ' i •'C.
Barry Friedman & Associates
11 The Pines Court
Suite A
St. Louis, MO 63141
(314) 434-8900 • Fax (314) 434-7710
Vall I own (_;ouncil
75 S. frontage Rd.
Vail, C10 8 1 b51
Cient7enlen:
I am a properly owner at 105 Vantage Point in Lianshead. I would like to
urge you nat to increase the codes of builcling height on a across the board basis. 1
wou1d think that slloulcl be done on an indivrdual basis, J-ust the way it is done in
V ail V illage,
1 know there are same bulldings in Lionshead that are talter than the present
zaning law permlts, but most of these bulldings are on the 1-70 where they act as
sound barriers and do not destroy the view for any of the people in Lionshead. I
believe if you go ahead and raise the height to 93 feet you will destrc?y the beauty
of Lionshead and make ii'i nothing rnore than another walled city. I can understand
Vail Associates wanting to put up mor•e buildings but I dan't think you want to ,
destroy the Lionshead part of the village.
I have been coming ta Vai1 for 25 year°s, and plan to continue to come for
many more years, atid I would urge tlie council to ga slow in rnaking ari across the
board exception on building heights.
Sincerely, ~
Bai-iy M. Fr1i-,.dtnan
Securities offered through BenefitsCorp Equities, Inc., a wholly owned subsidiary of Great West Life & Annuity Insurance Company
8515 E. Orchard Road • Englewood, CO 80111
MAR.,-02-98 MON 04:33 PM DFP ASSOCIATES, INC. 407 368 9644 . P.01
1699
1530 S.W. Mh Avenue ~
E300a RoXon, Florida 33486-1402
(561) 368-86"
March 2, 1998
Vall Town Councii
75 S. Frontage Road Vail Ca. 81657
Dear Council Members: -
As an owner In Varitage Point I am dismayed ta hear that you are cortsidering
amendin8 the cuRent heEght restfiCtions of 48 feet to a maxdmum of 93 feet in
Llonshead. -
Before we purchased our home we researohed the helqht restrictions tq ensure us that
our view o# the mountain would not be impecied. Once satisfled that the height
restrlMlon was a maxfmum of 48 feet we purchased our home, •
,
Beaver Creek yfras an altemative conslderation for the purchase of a home at tha# tima
The'?r111age of wallsn where no sunfight can shlne an the pedestrian walks was enough
of a detriment to eliminate Beaver Creek as a viable altemative,
tf the 93 fbat helght variance is approved it would certaEnly create a walled City
surrounding the eritrance to the mauntain that wauid elimfnate or drastically ceduce the
views of the mountain.
While i recognize that there is no legal protection of pdvate views and no IeBal basis for
retying on zoning regulatians remaining the same ln the light of changed conditiorts, you, as elected ottlclafs have a M4Rql. responsibility to preserve the views and .
openness of Lionshead for those who have purchased under the exisiing zoning
restrictions.
Please keep the current height restrictfort vf 48 feet In eifect. DONT CHANGE iTl
You tru ,
DF lates, c.
Karf E. Pre sse
President
03/02/98 09:14 FAX 3033671978 RAY LAMB RO1
FAX COVER SHEET
~
ti
L18te.
L F
To: U c_~
Fax Number '?7 0 -,9.7 ? f PIS7
FRaM: Rayn4~ \-P, Lamb
Fax/Te1. 303-367-1978
Comments: 2W vJ 1,aa~ m
V- / r V v
2 .
~
~
~ 144
-s
'Iz
Nurnber of pages, including cover sheet ~
LionsHead Master Plan ' •
. 5 i ..x. ~
Subject: LionsHead Master Plan
Date: Sun, 01 Mar 1998 18:21:33 -0500
From: Stephen Montgomery <smontgom@dreamscape.com>
To: ssilver@vail.net I am an interval owner of the time share units at Vantage Point in
Lionshead. I currently have a great view of the mountain from my forth
floor unit, if the amending of the building codes were to go into
effect I'd lose a11 the view and alot more--the whole experience of
coming to Vail wouid change. I strongly oppose changing the building
height restrictions--please convey my sentiments to the Council.
Sincerely Stepnen Montgomery, syracuse,ny
lofl
3/2/98 8:07 AM
Proposed building code changes
Subject: Proposed building code changes
Date: Mon, 2 Mar 1998 19:25:30 EST
From: BANJOJERI <BANJOJERI@aol.com>
To: ssilver@vail.net
Vail Town Council
We are aware of the proposed changes in the building code regarding height and
mass restricitions of new buildings.
As owners of a condominium at Vantage Point we are obviously strongly opposed
to such changes. It would not only spoil our view of the mountain but
decrease the value of our investment. This I'm sure is of no concern to Vail
associates but we depend on you not to forget the "1ittle guys."
Even were we not owners of property we would be opposed to see Lionshead
spoiled by big buildings. Lionshead has developed a special character over
the years which we love and allowing bigger taller buildings would change that
character severely. I'm sure several thousand other skiers have similar
feelings.
The future of Vail depends upon a great skiing experience. There are many
other areas and mountains on which to ski. Don't make the mistake of catering
only to a few interested only in bigger money.
Thank you for your consideration.
Margie and Jerry Ellefson
N9730 Count Road W
Colfax, WI 54730
1 of 1 3/3/98 7:28 AM
r~,~ ~U1
~
A
/Lc-~-~..r-
'
t1IYA~ `Y'"
~
~ .
~
~ f .
February 27, 1998
Vail Tawn Council
75 Frontage Rd
Vai1, Co 81657
Dear Town Council Members:
After attending a session on Height and Mass Concepts and
Alternatives, I hope to put a few of my concerns in writing.
First, I think it is possible that the concept of taking each
plan into consicleration separately may be workable. It, of
course, places an added burden on the council and requires an
enormous amount of trust from the current occupants and future
deuelopers.
I still have concerns about public gathering. As I stated
before there are large numbers of people at the ticket office
every morning waiting for friends. They do not simply get
tickets and proceed to the slopes. Except for the bus stop, I
have not noticed any other open area with this kind of
gathering. I think you need to assume that this use will
continue and allow for space for 200 or maybe 300 people to
gather around the ticket area and space for racks ior them to
place their skis.
I have serious doubts that snow melting walks will stay in
working condition. There surely will be times when snow
removal equipment will have to be brought in. There has to be
room enough for it. Corridors should not be narrowed and open
areas to pile snow should lae left. Dumping snow in trucks
takes even a larger area. The loaders back up and turn, as do
the trucks, and they are large cumbersome vehicles.
I am concerned that if corridors are narrowed there is not
enough space for trash removal vehicles. We cannot expect
buildings ta take their trash long distances ta be picked up.
I'd alsa like to go "back to square one" for a minute. I was
present for one walk around last summer. At that time I
recall that one of the major concerns was that there wasn't
enough "live beds" (not unrented condos) to support the
commercial businesses. "A hotel was needed." Now the idea
has been changed. Because of financial concerns the new
development is to be allowed to have first floor commercial
and condos above. How does this bring us closer to our goal?
I still remain committed to parking requirements. Please see
that the numbers stay up on the high side. It's not just day
skiers. I think we will see that mare affluent people will
start leaving cars just to use when in Vail and rental cars
abound even though our public transportation is great.
Lastly, but most importantly, I hope you will protect the
views the current owners have of the slopes. I requested
information from David Corbin at the February 10th session so
I could review it before I wrote but he has not responded.
Even so a huge building slopeside of any other is sure to take
a great deal away from the present owners. I tend to agree
with one member of the council who mentioned that the only
place for structures of increased height is next to the
highway with a general s.lope downward to the creek.
Thanks for you time.
Sincerely,
Kdy Dukesherer
Lifthouse Lodge
cc. Davis Corbin
~
CHILDCARE (LIPS
Created by the Childcare Resource & Referral, a program of The Resource Center
March, April 1998 "Peace on Earth Begins at Home... " Volume 2, Issue 2
Funding Available foEagle County
too childcare Capacity Child Find Program
by Sharon Thompson
BU11C1111g Research demonstrates clearly that
the most critical time to positively impact a
The opportunity for increasing c;hild- child's development is in the early childhood
care capacity has come to Eagle County. years. The Eagle County School District, in
Current childcare providers and those i.nter- conjunction with Eagle County Nursing Ser-
ested in starting a licensed childcare fa.cility vices, otfers a free developmental screening
are strongly encouraged to apply for fuild- program, called Child Find (formerly lcnown
ing that will increase childcare slots and as Children's Network). This is appropriate
hours. The goal of the funding project is to for any child from birth to five years of age.
increase childcare availability for families Every child is offered a vision, hearing, benefiting fiom the Child Care Assistance physical, and developmental screening.
Program run by The Eagle County Depart- Screenings are held monthJy and are
ir,erit of I-iealth and Human Services. sclleduled irom 8:30AM to 12:OOPM at al-
A survey was mailed to all exi:sting ternate ends of the valley. Familie,s may
licensed providers in Eagle County. The schedule appointments by calling 845-5999,
information obtained from these surveys or by calling Sharon Thompson at 926-
will be averaged in an effort to increase 6858. Child Care Providers should feel free
current county rates paid to providers to call with questions at anytime. The dates
through the Child Care Assistance Program. for the next screening are as follows:
Provider involvement in these pro- AVON EAGLE
grams is greatly appreciated. We hope this April 3 March 13
will benefit providers and the Childcare Pro- May 8
fession as a whole. Please contact Kat:hleen Summer dates will be scheduled in
Front at 328-8840 far more information on March.
capacity building applications. S'
( T ~ For more information regarding
The Child Care
~ 4&
Assistance Program
Contact Kathy Ross at
~ A 748-2007
i
,
PrOVICIeC' RNNOUNGEM£NTS
~
Spotlight
* The Garfield County Association
Wendy Kel1y has been a provider in Eagle of Family Childcare will hold a
County for the past two years. The opportunity to rnini-conference on March 7, 1998
stay home with her young children, now four and from 9AM until 2PM. Lunch will
six, while pursuing a child care profession was too be provided. Providers will be able
good to pass. Wendy, an Illinois native, lived in to earn four hours of on-going
Missouri and worked there as a licensed childcare crediL The fee is $30.00/per mem-
provider for tbree years. She moved to Colorado in ber, and $35.00/per non-member.
1988. Wendy enjoys camping, reading, and listening Kate Lujan, the County Health
to a variety of music. Nurse, will give a 1 1/2 hour
Introdueing.... training on Universai Precautions.
The tiome Observation Vrogram
At present, The Childcare Resource & Re- * CORRA, the Colorado Child "
ferral has been in contact with 35 prospective child- Care Resource & Referral Sys-
care providers. So far three people have completed tem, is working to develop respite
the pre-licensing classes and four people are half- care options for kids with disabili-
way finished! This is very exciting , we all know the ties and for families in crisis.
enormous demand! Please see enclosed information
We want to help these prospective providers sheet.
as much as possible on the road to their new careers.
Spending a few hours at an actual childcare home is * REM I N D ER: Your local Child- a wonderful way to be sure the childcare profession care Resource & Referral (R&R)
will fulfill all of their expectations. This is why we will be updating ulformation in
want to implelnent "The Home Observation Pro- early March! Feel free to call us
gram". This is a chance for already experienced whenever changes occur in va-
providers to earn a little extra money and offer their cancies!
ideas and expertise to a"new" provider.
* Training manuals and videos are
ALL VROVID617-S 6rPOTENTIAL PROVIDERS now available to be borrowed
i INT6R65TED IN PRRTIUpATWG, from the R&R. These training
PI_EAS6 C_Al..I_ tools were developed by West Ed
TH6 RESOl1RGE i'~6NTER: Center for Child & Family Stud-
~~oTl ies. This four part set includes
Wildwood Food Program eleven videos, four training manu-
The Wildwood Food Program offers licensed providers a als, and seven guides. For more
variety of technical assistance. Services include: record keep- information, please call 949-7097.
ing, tax beneEits, calendars designed for the childcare profes-
sional, workshops, recipes, craft ideas, tips on child develop- The (Zesour~e Gen#er
ment, cash supplements, books about nutrition and other AAVOGatBS 5uddies Gourtwatch
business-related subjects, and much more. Please call Ghildeare Izesouree gr Referral
970/945-7 i 21 for more information. q4q _~oq-1
HE16160 PROVIDERS!
I
bruary 24, i9.98 Look at tN-, 1rignt (5,id~z of Li f z
for thc~~5z :who ;
' rniuszd' ft 1'$n_
rasry and'P"Qbru- i, The early childhood years, don't succeed, try and try
arg M¢7-tinthe years from birth to age ` again." Sadly, some chii-
~Jdu mi~q~ o ; eight, are a good time- 'dren are aIlowed to think
on .50mjZ_ r?_allq indeed, the best time to that one attemp or a series
i n f o r m s t i;v Q; help children look on the of halfhearted attempts are
tonttnuir~,o v-du- bright side of life. We can sufficient. Such thinking
catian haurs. ; help by developing the right can lead to failure, feelings
'Dana Damm
attitude early in life. ` of pessimism, and a dimin-
taus~ht a~,out ~ POSITIVE , YOURSELF! ished sense of self-worth.
profv_~66ionnliFm •Instill in children a desire to D- Help children be success-
o€ thv,< January try, try and try again. As we ful. Help children think pos-
~~7_ t }n'd, gttd all know, life is full of fail- - itfvely about life and a posi-
tive attitude. Be positive
t~u~ht ~l~iVSLrsa} ures. However, we can yourself. Ghildren learn to
"Chitauerl can & siioala
~~rQc;~uiian~ < at be immunizea a9a~rzst teach children that they da be positive when they have
ii~sz flzbruary auepuession by ceac.h- not have to be satisfied with parents, family, teach-
m¢¢"tins;. •~i hi4; ; iT,g chem to be opcf- failures, and that one paih ers,and oth.ers who look on
Thank You tQ mistic insteaa or pes- to success is following the the bright side of life.
both of Ibim2?f0~, ~ irntstic!' old adage, "if at first you
th¢#r timiz nnd
Qffort. ~1SO, :
iYtank ; yoc~ to
3udy_ edotn ;for 'llbout tn¢ ea&, Coun.ty family (Day Carv- N**oeintion
or~;aniizin~; 'thq, `
dg~tatln anci
h~ipins~ hQr hu~ ~ The Eagle Valley Family enough for her to. keep it you are not a member al-
<band >wi(tz thv, i Day Care Association was going. Thank You, Carol, ready, please do so now by
devefoped about 14 yiaars for caring and for all your filling out the form on the
`eu}ionA Cl$~~ : ago. It has gone through a work. The Association back and sending it in to the
lot of changes in thosE; 14 should be important to ail of address listed.
Ma rch; 6 AprU Years. For the last two us providers. The benefits
>wiG~ be dect~eat~o! ' Years it was basically held of becoming a member are
together by one spE;cial great. The support that you
Asspc~utipw • lady, Carol Tatham. C:arol get from the Association is REM/NDER
was president, secrer,ary, so important. The officers
Laws, ott~er bus~ ; treasurer and everything care and want to provide Association meetings are
w~ss vu:Atters avj, else rolled into one. It took services that help all atways on the second
r)ettLUs.g ta K'u"'`' ; a lot of work and probably providers and enhance our Wednesday night of every
eaeim other better. ; Would have been easier for profession. By being a month. The times and lo-
1"}°Pe 'I her to let it go but the Asso- member you also are able cations are listed on the
~M~Y~: ciation was impoi-tant to give to other providers.lf calendar.
¦ 0 c MAN
I I
e We would like to welcome ali '
404101,-. _ It is for personal reasons and .
newiy licensed providers. With sad regret the Janet ~
Schofielci is resigning as presi-
dent of the Association. Please
call Marsha or Caroi w/questions.
ECFDCA OFFICERS Below is a form to fiil out for
becoming a member of the Eagle gY PAYING THE $10.00 PER
County Family Day Care
Vice-President YEAR YOU MAY ATTEND
Marsha Parmenter Association. ALL MONTHLY
524-7442 CONTINUING EDUCATION
I ZGrJ CeCjar D(. PLEASE RETURN THIS FORM ALONG WITH MEETINGS AT NO CHARGE,
P.O. Box 214 YOUR $10.00 cHEC?cTO: AS WELL AS ATTENDING _
Gypsum, CO 81637 THE M1N1 CONFERENCE'S
CAROL TATHAM 524-9581 AT A REDCED RATE. -
Secretary/Treasurer P.O. BOXZS2. GYPSUM, co 81637 PLEASE SUPPORT THE
Carol Tatham EAGLE COUNTY FAMILY
MAKE CHECK PAYABLE TO:
524-9581 ECEDCA DAY CARE ASSOCIATION.
747 Rangeview Dr.
P.O. BOX 252 NAME YOUR SUPPORT IS
Gypsum, CO 81637 ADDRESS GREATLY APPRECIATED!!
PHONE
LICENSE # ,
~
I
i .
,
The Childcare Resource & Referral is proud to announce a
new program made possible by Learning Cluster funding: ~
,
The Aetivity Visitor Program
Hello! My name is Debra Ketterling and I will be your new
Activity Visitor for Eagle C'ounty. I am willing to come into your
home/center to facilitate training and to encourage age appropi•iate activi- • ties for the youngsters that are in your care. I have a B.Se. in Elementary and Early Childhood Education, as ~
well as 15 years of preschool teaching experience in Eagle County. Listed ~ are some topics to peak your interest and give you a taste of vvhat I would
be willing to do fol a one hour training session. If you have other ideas
,
that are areas of "weakness", let's talk. Feel free to call me at horrie
• 328-1604 (Monday all day or 'Tuesday mornings are best for now) to ta:lk or set up a Training. These FREE training's will eount toward your 6
hours of yearly training REQtJIRED for your child care license and are
'based on topics that YOU warit to learn more about.
Techniques of Reading to Young Children
Holiday Gift Ideas: Parent Pleasers
Hands-on Science Thematic Based Curriculum
Choosing Quality Children's Literature
,
Yitchen Science
Sch.ool Age Activities
Songs and Fingerplays
~
Science Art ` Painting without Brushes
Creating; Take Home Fun Bags
Music in the Classroom , r
~ Activity Boaes Creative Art •
"Hoinework" for the Preschooler
Puppet:s and Puppet Making
Homernade Toys and Games ~
The Preschoolers "All About Me Book"
. Discipline: Your Child's Worth It ,
' This project must be completed bw May 31, 1998, so call early to set up a training!
Aw)Zzot xAccqqA
to be
The 1998 National Association of Child Care Resource and Referral Agents (NACCRRA) Western Regional
Conference will be held in Denver on Apri130-May 2, 1998. The conference annually brings a diverse group
of individuals interested in child care topics and provides a forum for discussion, learning and sharing of ex-
periences. Staff from child care resource and referral agencies, early childhood educators, public school
teachers and administrators, Head Start teachers and directors, job trainhig office directors, county comnus-
sioners, state and county departments of human services, state legislators, parents, conununity leaders and
many others are expected to attend.
The conference organizers, the Colorado Child Care Resource and Referral Agents and CORRA, the state
coordinating office, are encouraging people with topic or sponsorship/donation ideas to contact us at the
number below. Some of the topics expected to bc discussed include: Community Partnerslup and Collabora-
tion; Public Awareness and Advocacy; New Ways of Working with TANF/Public Assistance Services and
Families; Employer support; School-Age Child Care; and Funding.
For more information registering for the conference of presenting at the conference, please call Monica
Clancy at the CORRA Of~'ice at 303/290-9088 X201.
_ . r y ~ ~ .
The Resource Center
~Childcare Resource & ReferrQ! ;~~,p~
P.O. Box 2558 ~
Avon, CO 81620
,~~fi:~
Attn. Town Council Members
Town of Vni I
75 S. Frontage Rd.
Vail, CO 81657
I
.
~sw
,
+
~rt ~•r~'w'~,'4r` "~q`~ta5`' r ~ ~ ~~I~r+tiA~ ~~~:~ra~;\~'"~'' • ~ ~,1 ' ~r ~;r` .1 y
„ y .
~ ~`~'1 w. `Y"~~~~ +a ~ 1.. , ~"'i~`' r'GY,"•i1 yr~ r.y;!°.~µ` .,i:~ ~ . r ,
.
Ut'i~'
. ~
~
"~.~4 ~ &i . A .i • M~ ~i ~wr .
r ` »
• .
~v lti ~ ~ t ' x .
. t ~
•A ' y T
n .w c. . b ~,r . ,s,~+,,~,,~ . ,,t~ > h' r ; ,l ly : ~a'
. Y ~(~~I~~,_"".. "'"~~~~~y- ~.o~~~ „a ~ - ~z~ ~ I1~1 K,1r .L.1' 4_1
1~~.~~ ap.,+.~+ ~ ~{l' \h...~ 2~ " '1~~,...Y rl'~. ? a,r . ~yr~~`~
. .q~
. , 1~• . ,r yr x~+ Y ~ ~~~y ~,k . ' VJ y.'N , ~
•
w ~
r y . , • ,
d~+ f` • 'a.l't,t .
r x/ P r ? ~t
. . ~
~ ~ • ~
~ i, ~ .n~ ~aaa,~ ~ ~ ~ ~ - e *7w. ~ . ~ VF~~ ~ / ~ ~ ry, ~J. ~
.
y ` ~ ~.f«r . '~''~?9w~~ ~ , r'~,~ . k C" •'l~ •~J~`~ , ~ ~ * A ~ `+rr,'~1• ' ~
. ~
`t . ~ f '~Q~y"z x . ,^y`" `r~ ~ ~,`'t~ } 7 " '~'.~°,~1(. ~.~vc+c ~ Ai 7~' ~ ~ , ~ w
.
.
~ . ~ . ~ T- Tl~r a )y ti.
, .
~
,~,i~• - ~ ~
Y'
rt~#w. ~ ~ ' 1~ `~'t ' ~~1~ r ~ ~1''~r '~.p'
~
't
,
-r ~
'x
~ . ~
, . . . Ay
~ : . p~~~ . . • Y , . Y\-~~ ~d ~ ~ ~ • ~a
~ f, .r': ~ . • - ~ , ~ , _
- ~ „
.
r
~ h • ~ ~ ° ; c~
. , .
w , ~ 'r t: . ' ~ f... . 4 , ~ . ~r { ~
~
~ . . ir
_ . . . . . ~i ~•s, ,
• Y~ .
.
~ R.
. , :;,;y ,r~ ~ ~ ~ , • ~ r~~'~.,~ * ~j4~ r.
~
.
~
+ ~ r
, •
. , 3S-~ r,.' ~ ~!R ?~~r 1: ?
ti ~ " i'i . { "r3 r" ,.t '
r
`i'. ~ _,~4„yr r-• . 'i";~ ~ ' + d
, .
s f.~'.'1 ~ ~V~
~ ~ ~ ' , ~•,,~4 a I~ y7, s. nrjy
~f ` ~ "11? ~ .,r... ~~r,~ , ~ 4'~ 2' ~ ~
r ~~3. . T ~ ''4~:.~ t~t~ , sa, ` iti
< .
' ~ ~ M~'~ t ~ 'r : ~ ~ ~f'~ 1' r;` r ' ` , i
. ~
~f3l ~ ~r. .
s,~ ? o " Mih~ ~ . '4 N~"~'.+.r~7 • . . f , i Q.r,u.~
.
.
~ , . y . M , ~~y y . ~ r t'~? i
. . , ,
+ • * ! s ~~A ~ . . ~ ~
~ ' • ~
~ ~ .1 ~',~i~. ~I`°~ J~PN~~ i&/" M` , } . ~
rl~+ ~r.., ~+'w~. ~i. ~ • ~ , ~
.
.
~°~~c.M /,.a• 4~,~~~ .+l`_ ~ ~i. `'J.. C .~1 .1 1. i . ~ `
• y „ C . , a' v- ~ ~r , r`
~ ~-~.t : ~ ~ . , -
.
e4.x.` ~ ' y .~i• `M w' ~ t~ ' .~~lw ~ f' ~ ~ k I" ~ ~ .
~ N r! 4 ..4~~_ ~ .-.e~u;r-~I?„~°"" _ ~I + ? , ~1 ? + ,yjr. , ` w~/1
, i, ~ ~ r 1~~i, : + ~ i ~,4 ~r', • ~,,r I ,
,
. ~ ~
,
~ ~,y • , ~ r
rc l;• ~ ~
~ : ~ ~•r'~6~~ '1, ~ , 'i r ~
~ w ~ f ~>y'
~ j' +Mi`:. ~ ~ `i„ ? - ~ I~~ f ~ .~y " ,
.
r~• + • Y «j ~N ~
,
IM6''~r•~I~1~
.
, , . .
~ ,M'~ ~ ' ~ . . ..w~P .
n.. ' . ~+'v~ ~ ~ ~;r.,~M:~f~: r • ~
r_ .r . " , r , . ,
~
~ Y~ ~ ~ ~~•-Q"`~+ ~ ''i~' . , i ' ~ ~'1 ~ r~ ~'t /
.
? '~'t t
ot
t ~~~y~~,f ,/y yIl,~ a.;• ,~i
.
I
v F •
~ ~ ~ ~iw+t 1~~ .
: .
'y . w; . . ~J ~ ~ Rri~. ~`j `T- ~r
• - ~ ,.t~ ~ ~r : ~Y... ~tiC~
t'' .Y.~:rY.' . ~'~y;.,~. T _1~ ~~y`',,~~ ~ t,rj
~ A ~ k,.~!' ~1" Y+F~',~; '~~i '.ty ~ vt° ~r~'`` t ..1~
, y, ~f~ t~".~ a _ ~y ~ y~
~~~i. ~ Fi' ~j- ' x• i~ • ~ ~ , .,~'r~l . ~ . s f~' ~
°~`'qr, ~ ! Y' ~ ~ > J • t~
` ~,,fy~,~' _r~ ~ . ~ ~ ~w ti`~,dl,> ~ ~,r~L : ~9q J ~ ' ~r~ ~
~
.
~t C ).,_,,,I~ t ~ 1C.~'.~.. M~' r ~ ~ J• , •~j I
7 .
. . . ~
.
. . . , I ~ ti ~ • d ~ ,i`.,~ ~tl , , ,ri ~ 4•
.
.
. ,
.
~E•w, c,~ . ~ ~ r~'
.
. •
~ •
, . . • ~
~ J ' ~ ~ • J'4 ~ _ . , . ~~~aS ~ . ~
' "~F ' _ . .~',~;~~4,.~ iE~' • ~i., ? • ,1.'~.. : . , .r
. . . , . - .
. ~ . . .
. ,
~
(In thouaands except per share) 199b 1997 % change
Resort Revenues $267,409 $291,203 8,9°!0
Resort Cash Flovt;' $$4,828 S 92,888 9.5%
Resort EBITDAZ $ 80,630 $ 88,225 9.4%
Net Income $ 19,462 $ 23,619 21.4%
Earnings Per Share $ 0.57 $ 0.68 19.3%
Skier Days 4,644 4,890 5.3%
Ail f nanaal infarmatiori abom is pro forma for the IPO, and the merger witit Keystone and Breekenridge, as tJeogu h batit had
ouumd at the begin?ring af the periods prGCented, and auludu a$2.2 million oru-time, pre-tasc reorganizarion char~e.
a Resort Cash Flow u defined ss reve?tues fiam nsort operarioru less resort operaNng expenses, exctuding depnciatio?a and
amortization.
z Resort EB77DA u defined as Resort Cash Flow less corporate expense.
Pd`
• Generated record skier days, revenues, cash flow and earnings.
• Completed acquisition of, and fully integrated, Breckenridge
and Keystone operations.
• Completed $266 million initial public offering on the New York
Stock Exchange (trading symbol: "MTN")
• Implemented the most extensive resort improvement program in
the history of the Company.
• With the addition of two hotels and 11 new restaurants, the
company will manage six hotels, 72 restaurants, 40 retail and
rental outlets as well as over 1,300 residential condominiums for
the 1997-1998 ski season.
Cover photo: Colorado's White River Nateonal Forest and the Arapaho National Forest are the komes for our resorts and
among the public lunds mrenaged by the United States Forest Servece, our partner in providing recrestianal vpportunities af
wo?dd-ciass caliber Eo aglobal pablic.
VAILRESORTS, INC. ls the
premier mountain resort operator
in North America, with four
distinctive Colorado mountain
resorts: VA I L
,
BRECKENRIDGE,
KEYSTONE°
a n d BEAVER CREEK,
.
The Company and its employees
are committed to providing
excellence for our customers
and profitable growth for our
shareholders.
Oiir Shareholders
Fiscal 1997 was a remarkable year at Uail Resorts. ski market, and the industry as a whole.
It firinly established your company as the • In June 1997, we launched a$74 million
premier mountain resort operator in North resort capital improvement program that
America, with four distinctive resorts - Vail, increased high-speed lift capaciry, expanded
Breckenridge, Keystone and Beaver Creek. our snowmaking capabilities, created
In 1997, we doubled in size, generated record 11 dining facilities, enhanced the
financial results and made significant progress accommodations at our owned hotels,
in executing our growth strategies. renovated base lodges, introduced new and
As an integrated destination resort expanded on-inountain amenitiies, and
company, our success must also be measured completed the Beaver Creek Village Center.
in terms of the qualiry of both the service and • In September 1997, as the culmination of a
experiences we offer to our customers and host of new marketing initiatives, we launched
neighbors - who travel from near and far to a comprehensive airline-sryle guest loyalry
take advantage of the extraordinary skiing and program for frequent skiers. Our new
snowboarding, lodging, dining, shopping and "PEAKS at Vail ResortsT"" program rewards
other fine services that we provide. By that customers who visit any of our four resorts.
measureinent too, the satisfaction of our • During the year, we added to the strength
guests, 1997 was a banner year of which we and depth of our existing management team
are quite proud. through continued development of our
Let me briefly review our major middle management, along with the addition
2 accomplishments in the past fiscal year: of several senior executives with extensive
industry experience. Joining us were a new
• We opened the 1996-1997 ski season with Chief Financial O£ficer, new heads of
important new customer-pleasing amenities: Marketing and Sales, and new Chief
including in Beaver Creek, a new European- Operating Officers for our Breckenridge
sryle "village-to-village" ski experience along and Keystone resorts.
with a 30% terrain expansion; and at Vail, a • After the close of our fiscal year, we acquired
new luxury gondola and the introduction of two leading hotels, the Lodge at Vail and the
Adventure Ridge;" our imaginative Breckenridge Hilton bringing the total
mountaintop recreation and dining center. number of hotels we own or manage to six.
• Our January 1997 acquisition of
Breckenridge and Keystone doubled the A F o c u s o n P r o f i t a b i 1 i t y a n d
size of the Company. Just as important, we G r o w t h These achievements are consistent
successfully integrated these two resorts with the growth strategy outlined at the time
with the operations of Vail and Beaver Creek. of the Company's IPO: create new attractions
0 In February 1997, we successfully to enhance consumer appeal; broaden our
consummated an initial public offering, which participation in varied guest experiences;
strengthened our balance sheet and gives us provide value through our passion for quality;
access to capital that will enable us to pursue leverage our strong market position; and,
our growth strategies. capitalize on industry consolidation.
•By May 1997, we completed a record year in This focused strategy produced record
terms of skier days, which rose 5.3% to 4.9 financial results for your company in fiscal
million. This increase far outpaced the rate of 1997. Resort revenue rose 8.9% to $291.2
growth in both Colorado, the nation's leading million, on a pro forma basis, from fiscal 1996.
SKIER DAYS RESORT RGVFNLIFS RESORT CASH FLOW
~ • orma,
in thousands) in niiffion dollars)
,90 29L2
!5.00r 300 100
919
267.4
i0D 250
111 ii 10
1 1 1
Pro forma resort cash flow for fiscal 1997 was T h e Trai 1 A h e a d With this annual
$92.9 inillion, up 9.5%. Residential lot sales report, our first as a publicly owned company,
drove Real Estate revenue up 44.0% to $71.7 we hope to give you a full review of
million. Pro forma net incoine for the recent the strategies, assets, and operations of
year was $23.6 million, or $0.68 per share, an Vail Resorts. We trust that you will share the
increase of 19.3% from the $19.5 million, or enthusiasm and optimism of our management
$0.57 per share, in fiscal 1996. group that Vail Resorts is a special company,
Revenue from sources other than lift ticket and one well-positioned for continued growth.
sales was a key contributor to our strong There is something compelling and
financial performance. While lift ticket sales awe-inspiring about these majestic mountain
have grown consistently over the past decade, resorts of ours. Irreplaceable assets, they 3
revenues frorn our other business lines have remind us that achieving our growth
increased at a much faster rate. As a result, non- goals over the long term depends upon
lift ticket revenue as a percentage of toCal resort our respecting this inagnificent natural
revenue has grown in recent years, and stood at environinent, which has drawn us, our
53% for fiscal 1997. We expect our other key guests, our employees and our neighbors
business lines - Hospitaliry/Travel Services, here, and that keeps all of us coming back.
Retail and Rental, Dining, Ski School, and a
myriad of "other" smaller businesses - to Sincerely,
continue to be an increasingly important part
of our Conipany's growth going forward.
The Achievement o_f Many When Adam M. Aron
our guests arrive for a well-earned vacation cE,nivmot< <llid chte/'E.<<<trive O1t1«r
in the Colorado Rockies, they are greeted by
a staff that is renowned for the quality of its
service. That Vail Resorts has been associated
with quality for more than three decades
is a direct compliment to our thousands of
employees, and to those around us who •
r
have built our communities, who all work so hard and care so much about providing
our guests the best vacation experience they
can possibly receive.
Oiir i w
• Create new attractions to enhance consumer appeal
• Broaden our participation in varied guest experiences
• Provide value through our passion for quality
• Leverage our strong market position
• Capitalize on industry consolidation
At Vail Resorts, we are focused on expanding networks, innovative recreational attractions,
and enhancing our core ski operations while and improved base village facilities and
increasing the scope, diversiry and qualiry of amenities are all among the improvements
the activities and services we offer to our the Company has implemented to generate
guests - skiers and non-skiers alike - volume growth.
throughout the year. To move us closer to that For example, in the two ski seasons
goal, Vail Resorts is guided by a five-pronged following the opening of Vail's China Bowl in
strategy that has already produced significant 1988, which added 1,633 acres of open bowl
benefits for our guests, our communities and terrain, annual skier visits at the resort
our shareholders. increased by 17%.
Since then, the Company has similarly
4 C r e a t e N e w A t t r a c t i o n s t o E n h a n c e benefited from other terrain and facility
C o n s u m e r A p p e a 1 Consistently for over expansions. Skier visits at Beaver Creek rose
a decade, Vail Resorts has demonstrated a 12% after village-to-village skiing was
remarkable abiliry to enhance its consumer introduced during this fiscal year. Also this
appeal and to grow its skier visits faster than its year, skier visits at Keystone rose 15%
competitors. The Company's commitment to following the introduction of snowboarding
enhancing the ski and snowboard experience with a significant investment in snowboarding
on its mountains and the total vacation terrain parks and enhancements.
experience in its base villages has driven skier Additional projects to drive volume at
visit volume at the Company's resorts. our resorts have been completed in time for
Introducing new terrain, state-of-the-art lift the 1997-1998 season. Among them are the
1997 VAIL RESORTS
COLORAllO 1997 VAIL RESORTS
MARKET SHARE U.S. MARKET SHARE IMPACT OP 1988 CHINA BOWL TE2RAIN EXPANSION
D.
L
a
o
ii
wo
0~
0 I
NON-LIFT TICKET
REVENUE PER SKIEK DAY SHARE OF TOTAL
VS. INDUSTRY AVERAGE RESORT REVENUE
In another move consistent with this
strategry, we acquired hotels in Vail and
Breckenridge in the fall of 1997. Today,
' Vail Resorts operates six hotels, manages over
, 1,300 condominium units, 72 restaurants and
40 retail and rental outlets.
~
30
-20 Provide Value ThrouQh Our
0 Passion _for Quality Ouremployees'
commitment to deliver the highest-qualiry
service to our guests has made our resorts
the destination of choice for skiers and
snowboarders throughout Colorado, the
installation of four new high-speed quad United States and around the world. This
chairlifts; a 50% increase in snowmaking at historic passion for qualiry and its perceived
Breckenridge and a doubling of snowmaking value by our guests has allowed Vail Resorts
at Beaver Creek; and a wide array of to consistently achieve annual lead ticket
on-mountain and base village improvements, price increases above inflation during the
especially for families with children. past decade.
For the 1997-1998 ski season we look
B r o a d e n O u r P a r t i c i p a t i o n i n forward to continued quality enhancements,
Va r i e d G u e s t E x p e r i e n c e s In the stemming from our dedicated workforce and
1996-1997 ski season, the four resorts the added value to our customers from our
together received $59.55 in revenue per skier aggressive resort improvement program. S
visit, 44% greater than the industry average.
Yet the Company captures only about 20% of L e v e r aQ e O u r S t r o nA M a r k e t
the spending by the average visitor. Thus, the P o s i t i o n The Company has taken
opportunity to broaden our participation in significant steps to take advantage of its size,
varied guest experiences is an important geographic proximiry and position as a leading
strategic goal. mountain resort operator through innovative
That is the rationale for Vail Resorts' marketing and technology-driven programs.
expansion of its Hospitaliry, Dining, Retail Following the acquisition of
and Rental and other businesses. This strategy Breckenridge and Keystone in January
to expand these "non-lift ticket" businesses 1997, Vail Resorts combined marketing
was successful in 1997, with food revenues databases, created the PEAKS at Uail Resorts
rising 15% driven by the opening of six new frequent-skier loyalry program and introduced
restaurants; and retail and rental revenues an innovative new website, all as part of a
increasing 32% with the opening of nine new $20-plus million marketing campaign. Our
outlets. Adventure Ridge;" our daytime and investment in technology also gives our
nighttime mountaintop activiry and dining customers fully interchangeable lift tickets and
center at Vail, was introduced in 1997, has resort-wide charging privileges that can make
been widely acclaimed as one of the ski our mountains "cashless" for the convenience
industry's most dramatic innovations in years, of our guests.
and has added meaningfully to the Company's Our larger size has also enabled us to
revenues. negotiate preferred relationships with some
For the 1997-1998 ski season, we have 9,000 major travel agencies, to combine and
expanded Adventure Ridge, completed the upgrade our central reservation services, to
Golden PeakT" Base Lodge in Vail and the offer more competitive lodging and vacation
retail core of Beaver Creek Village, as well packages, and to secure an increase in airline
as added restaurants and retail outlets in seat capacity to the Vail/Eagle Counry and
Breckenridge and Keystone. Denver International Airports.
~
U.S. SNOWBOARD RESORT REVENUES NOT
VISIT GROWTH DEPENDENT ON SNOVI'FALL
Capitalize on Industry Consolidation (in ,
In recent years, the ski industry has undergone , 9.2
rapid consolidation. Between 1986 and 1997, O Soo
the number of ski resorts in the United States
declined from 709 to 507. Two years ago, the ' "
four largest ski resort companies in the United
o 300
States represented only 16.0% of the market. ~
Today, the share of the top four operators is ~ 00
25.9%. At the same time, the U.S. ski industry
remains fragmented, with no single resort '
operator representing more than 10% of total I 1897 88 0
skier visits. ' '
~
The Company participated in this resort 1
consolidation in 1997, with the January market than we have seen for a generation of
merger with Breckenridge and Keystone. entry-level skiers and snowboarders.
Additionally, the Company has participated As a group, these younger Americans are
in consolidation of hotel ownership within increasingly taking to the slopes on ~
its resorts with the recent hotel acquisitions snowboards. Between 1993 and 1997, the ~
in Vail and Breckenridge. We continue to number of snowboarder visits in the U.S. more i
look for potential partnership opportunities than doubled from 4.4 million to 9.2 million,
or acquisitions, which the Company is well an annual growth rate in excess of 20%.
positioned to achieve. Another favorable trend is the emergence
of new ski equipment. These parabolic or
~ "shaped" skis make it easier to learn and enjoy
the sport, which we expect will drive future
I n d u s t r y O v e r v i e w Vail Resorts' growth in skier visits.
focused growth strategy should also be seen in While these favorable industry trends affect
the context of several favorable industry all resorts in our industry, there is another trend
trends. Undoubtedly we will benefit from a unique to our Company. Historically our
key demographic shift, the emergence of the revenues have grown despite fluctuations
"Echo Boom" generation. The number of in snowfall. Over the past ten years, while
10 to 24 year-olds is expected to increase snowfall has fluctuated significantly, revenues at
dramatically over the next five to ten years, as Uail and Beaver Creek have increased in every
the children of the Baby Boomers age. For single year at an overall compound annual
Vail Resorts, this represents a larger potential growth rate of 10.6%.
199$ vs. 1997: Tor 4 COMPANIES' SHARE OF
U.S. SKI INDUSTRY TOTAL NUMBER OF IO TO 24 YEAR-OLDS IN THE U.S.
16.0%
~'I
WELCOME to
COLORADO
0
at its PEAK TM
Conveniently located within SO miles of each other, the Company's four resorts - Vail,
Breckenridge, Keystone and Beaver Creek - attract guests from near and far to a
region of tremendous natural beauty and some of the finest skiing and
year-round activities available anywhere in the world.
I
VAIL/EAGLE COC7N"T`3f ATR,~'ORT
~
~ _ .
,
BEAVER CIi,EEK
~ VAIL " i i I •
, .
~j BRECKENKIDGE
r
- ' ~
~
~ VAI L VALLEY~~ , . ~
n
, . ~
~
.
„
. . ~
. , `
~ , , ~ ~ ,
SUMM[T COUNTY
.
. s~.
~ .
KEYSTONE _ ~ ~
; , . , ~
` .
w , .
~ ~ .
` ~ /
l. !k; r~ A f! r~l~ . i I
~
,
' ' • ~ F,~
, ~ . .
, . . .
• ~ `
, _ ~ . ~ .
~
. , .
• ,
,
y
b . ? . . a. -
~ ~ ` . . - • ~ :
• • , i
+ aE~
. ,
. . ' i
I
I
~
1~ . . ' I . . . h -
• - - > w ~
~y',T~jy~ ~ ~ • • . • • • • • • • • • • • • • • ~ + • • • • ~ fA ~ ! • 'w ~,~.'~ja*"~•~~~ . -
•
• a ~ - •~s '
~ • .
~ •
, ~ ~
_ , _ , . . . w • ik~~~ j;
.
~ ll
; `
. y
w ~
•
rM; " ~ . . . . . `
44'~' q~~~9w~xu~, , , ~
~ ~ , • ~ w ~A 'I~w xY
,14
~i ' •
/r` . _ r . . •
. . ;~A~~~f •
k~~ p~ ^"~~4~li ~
'r 9 !'~t . I, ~ • ~ ~ ~ '
~ I f ~pa 11 ~ ~ V •1 . .
~ . , • . , ~
AX
;
~
~ I 4 w ' ' i • ~ r p '
, ~ p ,
~
W
M
VA 1 L is the largest, most popular
single mountain ski complex in
North America noted for i t s
EXTENSIVE TERRAIN a n d
7M ,rv.. . . J~ 1 .
LEGENDARY BACK BOWLS,
SOPHISTICATED LIFT NETWORK ~
~ a n d VIBRANT APRES SKI
in a majestic valley with stunning 7N.
y scenic allure.
,
• ~ . r ~ ~
, e:+i~+9
_ y- . . .
~ x
, !
~ ~6,:~~+~ r 4 ~ ,
t ~ ~ a rt~ y~' ~ • i ' ~ ~ ~ :
't f ~ ~ ' ~ ~ ~ • f ` ~ ~ '
. . . ~ , , ~ p. .
x`' ' 'A ~ ~ . .~n : , M1 , .s ' . ~al\l~7°
1~.* • ~ . ~ . t a~ ` 'p ~4~~ 'y'~~~ R
y, ~ . a . r ` , ~ ° ~ ;x-~ 4~ i` ' - ' ~ ~
, j
io
•'~y . ~ . ~ ~ ~ . +
` '4 •ti s J~ w~11'f.a+~~ . i . 1
. y , i~~~~~?
~w . .
1:61.
f p ~ L
" ~
, _ .
,L~
_ . ' " ~ dt
~
. . ..~.a. .~._.w . ~
.
. , ..~...u.....~._w.._...~. ~
.-...¦rwr~
~
~
~ e
I .
,
; ~ •
• ^
7.-AL,
•..Ri~~
( ° ~r~ ~ , ~ ~ • -
. . ,
~
;
.
~ Ir ~,,~i~~ ~ ~
~d • ~ ~ ~ . L ~'t ,t.
4I *r
,*Y' Y. ~ ~ ~ 1 T}ti *Mr 71_
r'h
. ~ , . ~ , •y , ..,-a.~ ( ~4{ ~ ~ ~ ` ~ a . ' . ~
.+~k ya~~+g;k ~ {
w f* . 1 , + 1` 5 8i'. . a s ~ a k•
. •TM~ . ` + 4,"i, Y . 1 ~t . ~
i.. .y, t ~ ~ i:~;,~~ 1,» 3.,'~n ~ t ~ + , AA
~ . . . . . _ ,7.. ~ . ~ p ' . . ' ~l
~ .
~ ~w
k.
. . , ~ .
~
VAIL
• Largest, most popular mountain resort in North America
• Consistently rated the nation's best ski resort
• Home of the legendary Back Bowls
• Lar est single-mountain network of high-speed chairlifts
in t~e world
• Leader in skiing innovations ~
D e s t i na t i o n t'ai! Since its opening 35 tremendous opportuniry to again showcase years ago, Vail has become the single most Vail around the world. ~
~
popular ski resort in North America, offering ~
an exceptional combination of unique and I ji t li e Yl''o r k s The Company continues `
_ ,
varied terrain, favorable weather and snow to improve and expand the guest amenities
conditions, a highly regarded ski school, fine that have made Vail so successful. Adventure
dining and lodging, and exciting apres ski. A Ridge, opened in 1997, and expanded for
total of 11 high-speed lifts and gondolas and 1998, was immediately recognized as an
20 other lifts transport skiers and snowboarders extraordinary innovation.
10 to over 4,600 acres of skiable terrain. The new 83,000 square-foot Golden Peak
These attributes have led readers of leading Base Lodge, which opened for the 1997-1998
ski magazines to rate Vail the number one ski season, contains three restaurants, a large
ski resort in the United States for each of the retail and rental outlet, as well as ski and
last ten years. Vail's reputation is worldwide, snowboard school facilities.
having been honored to be chosen as host of Additionally, over the next several years
the World Alpine Ski Championships again in the Company intends to open Category III,
1999. Having hosted the 1989 World Alpine a major terrain expansion which will increase
Ski Championships, this is the first time a the skiable acreage on Vail Mountain by more
North American ski resort has been selected than 40% to over 6,500 acres with significant
to host this prestigious event twice. With live intermediate bowl and glade skiing and
global television coverage, this will be a snowboarding.
VAIL
sKIER DAYS VAIL AT A GLANCE
, , , ,
~ .
,
~
, , -0. Intermediate ,
: e. -
. . , . . . _ _ . , . , _ 'V~ o sinW e att' rtbute
.
defines T>ail better
flian the legendary
~
L3ack Bowls, more tdaan
±even miles wide and
~ ~ .
~ nffering sorne of the
rnost distiractive terrain
and finest skiing in
Nort}i America.
t , n~S ~;•s ~
~ -
(I
r ,~y
. . ~L ~ . ~ ! , .sl .il
/
`i
~
ll
.
. .h
Al
~M.. , . -
1-
. , ,
. ' ~ f jS..^ t• I w4`'~'y-..ro '
ff
• , f p~. ~ J~ +-1 r'"
1/: ;..,r.
„ _ .
1
. ~ oL,.
~
-
c
Adventure Kidge, I/ail's daytirrie
and reighttime mountaintop diniriX
and activity center was a first for Lhe
ski industry last year. It o~fers seven
The magnificerit new Golden Peak Base I.odge and
restaurants and a wide range of
high-speed quad chairlift revitalizes the easternmvst
winter activities including sledding,
access point to Vail Mountairi and provides quick
tubing, ice skating, snowmobile tours and easy aaess to the Back Bowls. ~
and a children's snoupark.
ONCE IS NEVER ENOUGH.
BRECKENRIDGE is the second most
popular ski area in North America
that offers
VARIED SKI TERRAIN,
OVERLOOKING AN
HISTORIC VICTORIAN
MINING TOWN ~
71
that gives Breckenrid e an
4-1
authentic Colorado eel.
. }
~ t~.. S ~ 4 s~'j ~l d R^~< • t'..
,174
~~4c r a, a' a~ '~tr i y ! 9 ~
.,~.~~,`S't~ I~ . I f ; r i,x,~ ~ _`f . ~+~~+n ~r~ s, g~ ''fl4~~ ~_,fyy.' .s i .e. •r. ~ ~ ~Y° ' s
_ ' ~r~~ ~~id+ l X, 71~~~ 1~: =k.r 1. k r ~J. ".r•.~.
. r. ~rb ,^Y . ~Ys y~. _
. ~ .u. ~ : N: ij; t ' ~ + ? -i~~
~ .~{~''d'~'`t~~r{ ' , •r i' , ` ~ ~II ( J ` ~
':,~'r •
v
~ . ~ . ~
. ~
Abi
~ • ~ _ ~ ~ ~ . .y _ .
ur a ~ r~~~ ^ t 'F.Ya • ~i..i:: ~ .r w wF
.
. . • ~ d ~ . x" - ~ ~ . ~ ' ~
; p,~ , . ~ . ~ • v M 1 ~'1'{:~ .
a-
~
.
.
. a a
li~ .j,
. . . , • ~~~i-~ ~
,
.
.
~
? , • ;
j . . ~ 4~~~~~,~ i r k
~ af rMr
' w~
.
.
.
. ~ '
4
„t
~-A ~ ~ ~ f' ~ . • J.~ 4 w.,.-
.
"7 1 ' • ~ . '
~ y~ i ? .
. . ~
. s5. . ~
.
~
' i a . ~
2 ;
t , t~~~^
; . r .y. . . . -
t . . . . ~ . r.
. ~ ' . . . . . ~ . . .
a
~ w. . .
~
k~
Ar,l
.
~
.
.
'T . .
-o~ x , c ~ ~ ~ f tr' I ~ - ~ ~
P:~ 'a' • d .i { a ! ~ ~ ~ry ~ _ ~ .i~. I ~ .
~ ~ f ~ ' ,~,~~4ky y :e
.
~~~p ~ ~ • + ,r ~~.+y• ~ ~
'T ~ ~ ~~iir';~` y8 .r " 1 M I* r 4-. s ~ ~ ~ :
.
.
w .
t
u' *
r
~ ~ s. e - ' ' . L ' ^'53.~ - ?
? - ..._.n[ .u ' .
r
~ . Y- ~ ;~rt* ~'k~ ;~'~li,
x ' i'~~, ,r~~ ~ . , '"7 t •y i`-.. f_.~: _ - . _ - ~ 1.
~ Y .7LI~5~.. - ~ .d . , ~,J~,` ~ ~•r _
.
~ .
. ~
. ~
.
. ,
~
y b' d:
_ , y.~w..,. . . . ~
. . . ~
~
~^v.:.-n-..-..-..
. . ; ..~...~.~~......-~..~..~+..~.v:.-..:~.:,...., ~,t~>,..
.
~
?
. .n .,:...t-~.._ .e,~
~
I
, , . ~ 1.~ .
. ~ .
~
+iwen„M1 I
~
1
.
~
~
BRECKENRIDGE
• Second most popular mountain resort in North America
• Four interconnected mountains with diverse terrain
• Extensive guest lodging, shopping and apres ski
• Located in an historic and charming
Victorian mining town
• Many year-round festivals and events create local character
B t-o nd A p p c a 1 Breckenridge, located 85 resort by implementing many improvements
miles west of Denver and 40 miles east of Vail, to on-mountain facilities.
is second only to Vail in the number of skier
visits among North American resorts. With In t lr e I,Vo j-k s During fiscal 1997, Vail
more than 2,000 skiable acres on four different Resorts invested $18 million in resort
mountain peaks, Breckenridge offers excellent improvements, the largest investment in
terrain for beginning and intermediate skiers, Breckenridge's 36-year history. The Company
as well as open bowl skiing. added two high-speed quad chairlifts and
Reknown apres ski activities, extensive expanded snowmaking by 50% to increase
14 lodging capaciry and the Victorian grace mountain capaciry and to ensure better early
and energy of the Town of Breckenridge and late season ski conditions. To capture a
have made this resort an attractive destination greater share of guest spending, the Company
for national and international guests. has also expanded the ski school, added
On-mountain, the Company has significant dining options and increased retail and rental
opportunities to increase skier capacity, open operations. In October, the Company also
new dining alternatives, and add retail and acquired the 208-room Breckenridge Hilton,
rental outlets. After acquiring Breckenridge in the first hotel properry to be owned and
January 1997, the Company took immediate managed by the Company in Breckenridge.
steps to build on the historic success of the
BRECKENRIDGE
sKIER DAYS BRECKENRIDGE AT A GLANCE
,
Ski . •
0
„ . , 0
,o , ,
Higb-Speed s Intermediate %
Beginner 4
Two neu, higli-speed quad d2airlifts were part of $18 million of
resovt improvements at Breckenridge in 1997. This anvesCrnent
~ alone isgreatev tknn Breckenridge Moun~tain has receiu~ed c~ver
~ -.r. ~ tlae pnst dcrorlc.
r.. ~ ,
~ ~I 3 ik-11, f;~
r
, . , , . ~ V. .i~. ' .M •.y' .
, •
. t . i r '7~ .
~
. ~ ~
, Y
~
Breckeiiridge is lioriie to rnariy specinl cveras e,h~ h ;
year, including our annual january trihute tu tke
Norse God of Winter, LJllrfest.
i
IS
~ ~ _ •
t
-
i
hrv` .8~~~
. •
Y b.J ~ •
~
u ~
,
, _
- .'y' i- . ` . ,~p. .
~
13reikrnridgc br~zejit;Jeo~ri itc lucatio~~ in an liistorii l~iitoii~n~ ~niniir~~ t~~i~~it ii~irh i~~~n~e tlir~it
20, 000 beds, 70 restaurants and 130 shops.
0
BRECKENRIDGE
GOLD RUSH TOWN. PURE RUSH MOUNTAIN.
K E Y S T O N E is North America's third
most popular ski resort that features
THREE CLASSIC MOUNTAINS,
' WORLD-CLASS DINING
AND EXTENSIVE
~ NIGHT SKIING
#fi~ x in a planned family-oriented
~
communit offering a variety of
year-roun activities. ~
~
~
.
. ~
. t ~
: .
. . , .
.
. . . :
. ~ #
r
.t~t ~ . . . . . .
t. •
+ " t
. ~ , ~^.1 . ~ Q+
a . y . . ~4 • . . ~ 1'..
_ • .
h
A.
: ~a. : . Y..~
.
~ ~ - ~ .
'-c" ~..~'ae:~ •
6 .
~ ~ ~ .s ~'s~.
. ~
:
. ? ° 1~ ~(i ' ~r~
?
~a'q1A
• g ^ ~~.:k~ y1 ~ "^P i ~M~j°: ~4. ?
o.
i ~
t ~ ~ • ' `
• .
~ ~ ~ • ~ . a~ ~ , ~ 'a
.~,~y a ~ , ( ~y , ~ t n ,Xrr9 x ~ 'p.;,,.. *w ~ ,
.
~
P • `
~ ~ :m ~ III ~ 1 ~#MAY . ~ ~
. . . d~~+'.,, . ~ ~ j~'•j, r~..
u I e 6".` :t ~ { ~
~ y _ . ~ ~ 1"~ ~ , is'•{~
. ls,,: ,
,---,I--- , ~ ,
y ~ !~I, • 'y~
J
A ~ <r
wim
> w
. ~y,,..'
~
S
Sx
Y
. ~Y
S Y'
~ , x,~ ~~~~z~
, ; _ . . , r? . , , ~
, ef
d >b z, y~~;A.
k:.id Fm
hN,~R wfc ~ ~x ~
~ Ra r~se 3 ~ + ~'1 ~ it w ) e
tr ~
,
.
.
~'yj?':
IL'~y~"S~,/~,
N
N
, ~ , ~ s~r~ •J , ~l~~"` '
~
ry '
~
r
~
, • x e.
m
i ~
> o .
x
t ` ` ~ • .
Y ~ v , ~ ~rf~~ ~ ~y ~ ~ -
, .
~
U
x ~
~
t:. I
f`
~ n.. ?
~
>
~
.
n
~ s
, r
. .
,
.
. ,
.
,
,
.
~k
r ~ . • ~
. ,
;
,
. .y . ~
.
.
.
~ .
,
~ . . ~ , ,
x, 4
.
°
. ~ ~ a ~ ~b ~ . . ¦ ~wi.
KEYSTONE
• Third most popular mountain resort in North America
• Vast snowmaking capability ensures long ski season
• Extensive night skiing
• Family-oriented community with five distinctive
neighborhoods
• Highly developed hotel, property management and
dining businesses
A L o ng e r S e a s o n Keystone offers over is also a planned, family-oriented community
1,700 skiable acres on three mountains linked with five distinctive neighborhoods at the base
by a network of 20 lifts, including two of its mountains. Of these, River Run Village,
high-speed gondolas and four high-speed with its award-winning architecture and
quad chairlifts. With extensive snowmaking design, is Keystone's newest communiry.
capabilities that cover 49% of the resort's With the completion of another major
skiable terrain, Keystone is usually the first phase of River Run's development this
Colorado mountain resort to open each autumn, River Run now includes 165
18 season and one of the last to close. The resort residential and lodging units and 65,320
also boasts 131ighted trails that offer the square feet of commercial space.
largest single-mountain night skiing The master plan for River Run together
experience in North America. with the build out of Keystone's four other
neighborhoods, calls for 4,600 residential and
I n T h e Wo r k s With the Arapaho National lodging units and up to 382,000 square feet of
Forest as its backdrop, Keystone is a place of retail and restaurant space to be built. And, as a
exceptional natural beaury, where much of the complement to Keystone's Robert Trent Jones,
surrounding forests, streams and wetlands will Jr. championship golf course, the Company broke
forever remain natural and pristine. Keystone ground on a second 18-hole course in 1997.
KEYSTONE
sKiEa naYs KEYSTONE AT A GLANCE
Ski , O ;
~
„
ge Elevation ",300 ft.
Summit Elevation 12,200
00 ft.
„
.
0 ExpertlAdvanced '
.
, , , Chairlifts . Intermediate
.
Beginner ,
- Renowned for its fine
dining, Keystone is honie
to two restaurants that hnve
received the pvestigious
AAA Four-Diamond
rating, including the
:
,
Alpenglow Stube.
~5~ _
~ ~M.~ 8 * pi. , ~ II .I ~ ( ' ~ I+ ~ ~
"ti ~ • ~ 1 ~M ~
r b
,
srr-: a R ` ~
The largest facility of its kind in the Rocfr},
Mountains, the Keystone Conference Cewcr
o.
generates approxivnately 80,000 room ru'glu>
each year at the Company s owned and
managed properties.
19
7717-
~
~
Keystone's night skiing operntion is the IavQest sitigle-moutitaiii night skii1~g expevience in Nnrt{i America.
~
KEYSTONE
THE NATURE OF THE ROCKIES.
~ '
. i ~ . . ~ I .
i . i ~ ~ . . ,
~ .
. . / A
..I . ; ~ .
. , . ..+I x~, . . . . ,
j ~ ~ ~ . ! • . . , .
,
~j, ~
I II ; ; ~ . ~+i ~',l 1
i yi~ •~i l #
l
, D•.
P1 I'~ ~ . ~ti~ ~ ~ ~
, ~i ~ ~ ~ l • ; i ~
• ti'~ ~r
~ -k• ' ' • i..
~
7 ' •
_ ~ 1" ~ ~ • ' ? 1 S ~.N.. -
~ f4 i4'^y~~~~~3.= ~ TrtG~ ~~d. w..
s , ~ . "iy;~ ~ . ;~y~-' y~w~ R~
. .
. .
' ~ " ~ ~ I1~. ~ p i ~ . ~ ~t a " :4'~ ~ • f '~':R"' .
•
. , , ~ ~ f i 1+' . '
' I ~ • ~ . s . ' ~ P ~
~ ~ . ~ • ~ 4 ~ i
;f
~ , t ~ I~: . • ~ .
- V .
. _ _ • ' ~ ~ ,
_
F,_ : . . . _
, . . .
. ~
w4;,~ ~ :
:
BE"ER CREEK offers
impeccably groomed,
'T* SKI TERRAIN SFAN:NING ~
• SIX MILES ACROSS,
A 1VIAGICAL NEW VILLAGE CENTER, ~
a n d is one of the world's
most pristine family-oriented
. mountain resarts, '
, •
w
r . L ~ ~~`~+f! :.r
5 f ! k~ I~ rf p'~ .y Y
~1 L E:. ~r~
I
f Y ~`ii' ! ~ t~'; # 1 i . . p i • i~~.
I t yY~' ,r x1
~~)t ~F ~I'' Yi . ~i i ~ ; 4.,i . . , ,'.~t.
. ~ ' .Y- . .
~
' ?
f ~ - • „ , aj
w a , " ~1 ~++~R~,,.. . . _
=t-" • ~ , ~
.~"~!!'^~~~y , ~.A ~ ~~~~y • ~ . . 1 ~ ~ ~ ~
M £ ~'~7' ~ ~K 'T
• _ . r _ ,i. • ,iR ~~.j';k~. ,~;~i...~"-~ Y' ~Y .
. . i ~ . x~ ..yIY' _ 1 ~ ~ a •
r ~ • ~ ~~E~ , r ! ~
LAa~
W1 A
r efc,. t~' ~
v
* x£ ~ f?. ~ +wy•~ ~~R R
. ~ * ~ y r .
y Jti 9
. ' 1. • . ~ ~~y ~ ~ y .~R'
s• y~'`' I~ ~ ii - ' , y~ . r . ~ ' r ~,y'' { ~ ~R' ` ..~p ' • Y'"
. ~~E
<<
A ~ 1 i'i~..~. • h ~ ~ ~ ..rn ,'~,~~'~~Y~~~. }~Y~ ~ i~`
~ . _ . . ~~~x~ • J. } t C 3~ ~ ; y . ' i~nr ~*a!~p
BEAVER CREEK
• Elegant family-oriented mountain resort
• European-style village-to-village skiing spanning six miles
• New Birds of Prey World Cup downhill race course
• Home to a new 528-seat performing arts complex
• Village Center completion adds great charm and new
revenue opportunities
Pristine SettinA, Superior Service liftsanditsnewBirdsofPreydownhillrace
Beaver Creek is one of the world's premier course is reputed to be the second toughest
family-oriented resorts that offers guests a in the world.
superior experience in a pristine alpine setting.
Since opening f o r the 1980-1981 season, annual I n t h e Wo r k s The Company's
skier visits have grown from 111,746 to 644,456, commitment to qualiry can be seen in the
making Beaver Creek one of the fastest growing recently completed Beaver Creek Village
ski resorts in North America. Even prior to the Center, which represents the completion of
completion of the new Beaver Creek Village the Beaver Creek master plan as envisioned
22 Center, the 1997 Snow Country magazine nearly 20 years ago. With the feel of an
rankings named Beaver Creek as the fifth best elegant alpine hideaway, the village now
U.S. ski resort. features the 528-seat Vilar Center for the Arts,
Beaver Creek provides a vacation experience an outdoor ice skating rink surrounded by
distincrive and varied from Uail, which is many new retail shops and restaurants as well
located just 10 miles to the east. Smaller and as additional luxury condominium units.
more intimate, Beaver Creek nonetheless With Beaver Creek Village now complete,
offers exceptional skiing. In fiscal 1997, the the Company will be focused on the build-out
Company completed the first step in creating a of Bachelor Gulch Village and Arrowhead
European-sryle village-to-village ski experience Village, both of which offer substantial
by linking Beaver Creek, Bachelor Gulch and opportunities for slopeslide lodging and skier
Arrowhead with intexconnected trails and ski service facilities. i'
BE.4VER CREEK
sKIER DAYS BEAVER CREEK AT A GLANCE
(in .
, . ,
600
,
. -00 ft.
" Summit , 41 o, ir ,c-
Too Vertical ' 41 ft.
.
'
I
Higb-Speed .
~
The World Championship Birds of Prey downhill is
one of the most dramatic and challenginA courses in the
world, and will play host to the 1999 Wor1d Alpine Ski
Championships to be held at Vail and Beaver Creek.
Beaver Creel Village is nothing less than magical, the result
of two decades of effort, capped most recently by three years o, f
- rAOii-coniplcted a,rutructron.
~ f
a
i,
r "
,
,
.
, i , ~i? /
U ~ _
~
i
. ~ . . ~ .:J
A ,
, ~ .
- `il~s~,~.~ ~ ! ;7 ~ . j,
.
- ~ _ , ,
_ .
~ -
<
,
, _ . . .
T
y
u
23
~
.r h .
' - .~...b, ' •
. a:,.• 7. x . ~ .
~
, 1 ~ ,,,,JJ? w'~x~ d' f, ~ v ~ ~ ~ t ~ - . ~ A
M.~r~~ ti ~ ~ ~ A . Iy p ~ ~ q} h`
ik ;
~ `0 1, • Vpr"„1,
~q°~'w ' P
~ y~ ~ I~ •`n. 4y ~ o
~ , ~ ` 9 ' Ve~ ~ i" k~ Y ra7!'?SS~ . 1~ • ~ ~4 ~ `wr. Ms.
~t 1 ny ~ ~ ~ ~ .vi. 41Y4 I i' , . \ ':,LL 't~`}~ . `,Wyd° R~~ 4
41`~J
~ Y;,f~~~~•,~ a ~ W~~,~u~~- .a~ ,a eww'~. ~ ~ ~i sr. i ~ V a"~'.:. ` k` ~w
~ el .{'i~:. •6 ~
'Al
~ v a M ~i } ..J~" v`~ ' • ~ _ rs^' " w ° 6t,
.
1"'Y 1/ t 1( • _ _ ~ . y , , ~ • ' r ~ ~i.. k~
'~q, CHELOR,GUL'~ s
PVD..W-AD
ILL
. v C
_ . . • . 3 ~ ~~-•S's~ ~u _ _.L
. ~ . p . . ~ . , ~ _ .
G G
-,r
.:.x. _ s : ,~:e~4~~°r'~..~~'tT", 1~,~ ! e%w"yaarrA . ~ ~ ~ - ~ 9 ';.,~a~ ~
..._._.M•- - - ' ~ s~
. "ffi`"s` ,`6'~ ? W .~\~~W ~r-.~.. _ -
m ~ .
A.
Beaver Creek, Arrowhead and Bachelor Giilch oyer European-style
village- to -village skiing through interconnected ski lifts and trails. ~ •
~
THREE VALLEYS AND FIVE STARS.
.
VAILRESORTS, INC. 1S arl
inte rated destination resort com an
g p y
with many diverse operations
includin
g:
HOSPITALITY,
DINING,
SKI & SNOWBOARD
SCHOOL,
RETAIL AND RENTAL
and A MYRIAD OF
"OTHER" BUSINESSES.
The Company is committed to
enhancin the ran e and g g quality
of services offered to its guests,
HOSPITALITY AND TRAVEL SERVICES
The Company's hospitality operations provide guests a full complement of quality resort
services and provide the Company with additional sources of revenue and profitability.
These operations include reservations, tour and travel operations, lodging, property and
conference center management. Through creating preferred relationships with major
travel companies, capitalizing on its customer database and improving cross-selling of
~ its activities and services, the Company believes it can significantly expand its hospitality
~ operations and positively impact the Company as a whole. Additionally, there may be
~ opportunities to expand the lodging and property management business through selective
acquisitions or partnerships with already established businesses. The fall 1997 acquisitions
of the Lodge at Vail, with its 117-rooms and managed condominiums and the 208-room
Breckenridge Hilton reflect this strategy.
* ~ ~ * *
Supporting the Company's overall Tiie Lodge at T/ail, lorW a T/ail landmark, is vated one of t{te
hospitality business is its central reservations besC vesort hotels in North Anierica by Concle Nast Tvaveler.
; operation, which offers complete vacation h~r,,;l f packages for all four of the Company's resorts,
; including airfare, ground transportation,
lodging, lift tickets, ski and snowboard lessons
and other activities. Travelers can enjoy the
~ convenience of planning their vacation with
A
a single phone call in which the Company V'
~
~ also has the opportuniry to cross-sell activities
~ and services prior to a guest's arrival. With
i -~,~r,. ~
the consolidation of all four resorts' central
reservations operations this past year, the
~ Company is well positioned to leverage its
~ reservations capaciry and expertise to both drive and benefit frotn future hospitaliry
.
I
~ business growth.
, . ~
~ HOSPITALITY i~f~'~~~~`'
HOSPITALI iY SHARE OF RBSORT
~ RpvFrvuF. REVeNUF
, i
i ~
r
1997
35
~ y ?
31.8
{ 0
25 -
Ovrr L, ?UUprivate roildominiiatrtc inartagcd arid reiatcd by
the Campariy are rnudi sought after by vacntioners, and
vepresen t a profitable part of td~e Cornpar2y'.r bwsiness.
96 97 1
DINING
Vail Resorts offers its guests a wide variety of dining options: ranging from the top-rated
Keystone Ranch, Beano's Cabin'" at Beaver Creek and the Game Creek ClubT"" at Vail; to
affordable family dining and trailside express-food outlets; to apres ski and nightclubs.
The Company operates 24 on-mountain and base area restaurants in Vai1,17 in Beaver Creek,
8 in Breckenridge and 23 in Keystone. Together, these 72 restaurants contain 11,000 seats
to provide our customers with any type of dining experience they desire.
* ~ * * ~
By owning and operating a diverse group D I N I N G
of restaurants, Vail Resorts ensures service D i N iNG S H A R E o F R E s o Rr
qualiry and participates profitably in a R F V'I-N U G REVENUE
significant portion of the guest experience. As
a result, the Company has actively expanded 45
its dining operations. The Company opened 38.1
11 new restaurants for the 1997-1998 ski 35
season, including the year-round base village 25
restaurants, Rendezvous, Toscanini and the
26 Dusry Boot Saloon in Beaver Creek Village,
as well as BellaRiva in Vail. 15
There is a substantial opportuniry to
Diing
dining at each of the Company's
resorts and especially at Breckenridge, where
food service revenue per skier is below the
Company noY'm. In adClltlon, with the Bearao'.r Cabin at Beaver Creek, like the Alpenglow Stube
eXpansion of its dining alternatives, the at Keystone and the Gavne Creek Club at 1/ail, offers fine
Company is increasing its participation in cuisine in mountaintop splendor.
apres ski, evening and year-round businesses.
. .
r~..,.•~
~ ~ ~
± ' ~I 1 A I . M ' M~ ,w•l- ~ 1
°..i ~ . I._ ~ ' . ~ ?
~ . ~ .
y'
~N
~ r , • ~ F
.
k ~ 'IIII
„
;
.z_ A
• - _ - . _ ,
~ • a. ~ . .
'
t
' ? II
~
17ie BI»r .Llooii 13ar, wliicfi upcricrl m 1997 at tlir ro]
of T/ail Motirataira, is aaessible day and night via the
luxurious Eagle Bahngondola throughout the year. ~I
SKI AND SNOWBOARD SCHOOL
Vail Resorts operates an extensive ski school that offers group classes, private lessons and
specialty workshops for skiers and snowboarders from beginner to seasoned expert. With
more than 2,200 instructors across four resorts, the Company's ski and snowboard
schools are the largest in the world. One measure of their quality is the guest participation
rate, which historically at Vai1 and Beaver Creek has been higher than that of any other
major ski resort.
The Vail and Beaver Creek Ski and
Snowboard Schools have grown 58% since S K I S C H O O L
1991, and are a source of significant revenue S K I S C H O O L S H A R E o F R F s o RT
REVFNUF , REVENUE
and cash flow for the Company. The
Company believes it can increase ski and
snowboard school participation rates at
Breckenridge and Keystone by introducing
the incentive compensation programs for
30
instructors and new lesson products for guests
that have driven historical growth at Vail 27
and Beaver Creek. 25
The ski school is also well positioned to
benefit from the growing popularity of
snowboarding, due to the Company having
been a leading innovator in instruction over
the past five years.
,4. t y '~J "F
~ 4 _ T Yi ~ ' -_4 ? .
Snou,boavding, orie of the fasfest ~voi+,iriy cpovts iri tlie • ' . ;
_ ~
mur2try, has Ervoiag{at tiew eriergy to winter rerreation. ~ ~ ~4~ , l ~ ? 1 1 ~ ~ ,
~f
,'~j =HiAkly trairaed bistructovs irirvoduce thoiasands
i
_ of childrer~. every year to the magic of skiing.
,
I
~
RETAIL AND RENTAL
High-end ski and snowboard wear, skis, snowboards, hats, gloves, goggles, sunglasses and
resort-related logo merchandise are among the many items available in the Company's
40 retail and rental outlets. Eleven of these outlets are primarily ski and snowboard rental
centers located at the base of each of the Company's resorts. The Company also operates
three on-mountain New Technology Centers` ("NTCs") at Vail and Beaver Creek that
offer guests the opportunity to test the latest ski and snowboard equipment without
leaving the mountain.
In the past year, Vail Resorts has taken
several steps to expand the scope of its retail R E-rn ? L
and rental business significantly to generate R s rA i L S H A R E o F R E s o x-r
REVF.NUG REVGNUE
additional revenue and cash flow. With the
nine new retail and rental stores that opened proor a
dolLus)
in fiscal 1997, the Company experienced ' 17.6
significant growth in total retail space.
For the 1997-1998 ski season, the Company
28 has opened three additional retail and rental
outlets including two new stores in the recently '
completed, slopeside One Beaver Creek.
Opportunities remain to expand retail and
rental operations selectively across each of the
Company's resorts.
Staffed by knowledgeable employees and stocked with the
latest in form and function, the Company's retail otietlets can e;ll ~ y
fill d1i°.t'uc~t's cvery viecd.
M
, -
\ . . . , _ . .
. . ' . `k ,
. T ~
~ ~ ' ~ _ _ f P"~ ~ ~ ~
~ d
.
,
~ ,
.
~ . ,
t a . ,
r
~
;
. . . ~
. ~ .
g _ .
;
~
Aewl
~
Snowboard sales and verital., represeret
an ever-increasing line of business.
_
"OTHER" BUSINESSES
To enhance the appeal of our resorts throughout the year, Vail Resorts operates many
other additional businesses. The wide selection of activities and services we offer helps
generate resort revenue per skier visit that is 44% greater than the industry average.
GOLF ANI) SUMMER RECREATION LICENSING AND SPONSORSHIPS
After the snow melts, outdoor ~ With its world-class resorts,
enthusiasts enjoy golf, tennis, m the Co mpany's brand names
rafting, horseback riding, scenic ~ are recognized worldwide. To
chairlift rides with access to leverage this brand identiry and
ulountain biking and hiking the attractive demographics of
and other activities available in its customer base, Vail Resorts
and around the Company's resorts. Surrounding has entered into revenue-generating sponsorship
the Company's resorts are 14 world-class golf agreements and strategic alliances with world-class
courses. To capitalize on the populariry of golf, business partners, including such highly-regarded
Uail Resorts is currently planning three 18-hole companies as Atlas snowshoes, Bailey's, Bolle,
golf courses at Keystone and Beaver Creek, Chevy Trucks, Coca-Cola', Compaq, Coors,
in addition to the two courses the Company Evian, FILA, Microsoft, Pepsi, Sprint and
currently owns and manages. TAG Heuer.
ADVENTURE RIDGE AND WINTER RECREATION C Cl M M E IZ C T NI_ L E A S I N G ReCOgnlZlrig t11at
Located at the top of Vail ' rhe appeal of our resorts is made
Mountain, Adventure Ridge more unique and is enhanced 29
offers a wide array of winter by the passion and creativiry of
activities, including day and iiidividual entrepreneurs, the
night ice skating, tubing, Company leases most of the
sledding, lighted snowboard storefronts it owns to local
ter-rairi, snoxxTniobiling tours and a children's mercli.~~~~,, i„ ul I,~ Company's profitable
snowpark. The attraction was so popular that its commercial leasing business.
capaciry has been more than doubled for the
1997-1998 season. The Company continLles to K V B A T V R TV8 is one of the most widely
explore ways to offer fun, family oriented non-ski i~• viewed television channels in
winter activities that enhance the guests' vacation the Vail Valley. The flagship
experience. n w z program, Good Movning Tlail,
earns higher ratings locally than
C L u B M A tv a G E M E[v T For guests who iiational morning news and
desire the highest-qualiry cntertainmenC shows. The
service and the privileges of ~ tI.uinQ I i~ In Cllent advertising vehicle for the
tnembership in a private club, Company and local businesses.
g the Company has created and
~ ~ . •
- tnanages the Beaver Creek R F: a i F. ,~r ar r~B R o x E R e G E Uail Resorts'
Club, Game Creek Club and real estate brokerage operations
the 1'assport Club at Golden Yeak. Amenities .ire conducted through joint
range from private dining to private parking and . u• ventures, which have strong
golf privileges. The Company earns ongoing inarket positions in the markets
management fees for overseeing club operations. ~ they serve. These operations
The Coinpany is planning similar club operations ~ 1iave also been a valuable source
for Bachelor Gulch and Arrowhead homeowners ut111iurilia(i0ii i>> planning and marketiing the
on Beaver Creek Mountain. Company's real estate projects.
~
g
r
8
P
REAL ESTATE DEVELOPMENT
Vail Resorts has an active real estate development business, which supplements ongoing
resort operations. The Company has extensive land holdings throughout Eagle and
Summit Counties, surrounding its resorts, which are managed by Vail Resorts
Development Company (VRDC), a wholly owned subsidiary responsible for planning,
marketing, infrastructure design and construction.
S u p p o r t i nA F u t u r e G r o w t h activiry. To minimize its risk, VRD C typically
The focus of the Company's real estate contracts to sell development sites to
development is to generate significant cash third-parry developers who undertake the
flows while benefiting the Cornpany's resort construction and financial obligations of the
operations through (i) the creation of residential units. Vail Resorts, in turn, receives ~additional lodging for resort guests, (ii) the an upfront cash payment for the land as well as ~ability to control the architectural theming of a share in the developer's profit. For example, ~
its resorts, (iii) the creation of new restaurants, the recent development of One Beaver Creek ~retail operations and skier service space in the and Market Square, which completed the core ~
base village of the Company's resorts that of Beaver Creek Village, were developed in ~
create new sources of recurring resort this rnanner. ~
revenue, (iv) the enhanceinent or addition Residential development projects also 'of on-mountain facilities and amenities, rypically include commercial development,
30 Which improve the vacation experience which enhances the qualiry and variery of offered at the Company's resorts, and (v) the shopping and dining available in the base
expansion of the Company's properry villages of the Company's resorts. In most
management and brokerage operations. developments, the Company retains the rights
To facilitate real estate development, to the new retail or commercial space, which
VRDC invests significant capital for may be either leased to third-party tenants or
on-mountain improvements, such as ski lifts, operated by the Company itself. This strategy
trails and snowmaking. These improvements has been very successful in the development
enhance the value of the Company's real of Beaver Creek Village dining and shopping
estate holdings while also improving the alternatives.
qualiry of the overall ski and snowboard ~
ex erience offered to its uests. Followin 7 R E n ~ E s T n r~
p g ~i REAL ESTATE YEAR- END
this strategy, VRDC invested significant !t i V r N e s B O O K V a L u F
capital to develop the Bachelor Gulch ski dollars)
terrain, including a high-speed quad chairlift. 1,14.9
This investment, which supported 12% skier so 71.7 160
visit growth in Beaver Creek this past year, `
60
72-
also allowed VRDC to contract to sell 101
' ~
~
ski-in/ski-out, single-family homesites 5'
adjacent to the Bachelor Gulch ski terrain 0
for an average of $750,000 per homesite. 0
The majoriry of these homesite sales were , , closed in fiscal 1997.
5 4.6
In addition to selling single-family ~
93 94 95 96* 97* 93 94 95 96* 47*
homesites, VRDC also develops multi-family '
S1teS, lri 2ddltlOri t0 OtheT' T'eSOT't deVelOprilerit ' ProJorma ro mdude i,npacr of Krystnne arid Breckenridge acqursir;on. ~
~
f
- i
B •
uI i •in
t o t e
FUTURE
At Vail Resorts, vve are eager to innovate in ways that attract
more guests to our resorts and that enhance the
quality of their vacations with us. At the same time, we take seriously our responsibilities to
our employees, to our communities, and to the
environment in which we operate. We have
provided comprehensive benefits and affordable
housing for our employees. We have enabled those
in our communities to prosper along with us. And
even as we have grown, Vail Resorts, along with
the United State Forest Service, has been sensitive
to the needs of environmental protection and
conservation.
As we focus on innovation in marketing, access, technology and
eustomer service, we will continue to recognize the
obligations we have to our employees, to those
who call our communities home...and to the future
generations who will someday experience the
splendor and joy of the Calorado Rockies, which is
at the heart of today's Vail Resorts experience.
MARKETING, SALES AND PROMOTION
To build upon our strong brand identity and increase demand for our resorts throughout
the year, the Company has dedicated more than $20 million for marketing, sales and
promotion in fisca11998. Primary vehicles to reach potential visitors are advertising in
leading magazines, direct mail to past and potential guests, our new internet website and
extensive public relations activity, all complemented by the industry's largest sales force.
Our marketing efforts are designed to reinforce the image of a portfolio of resorts that
individually possess a distinctive character and personality, and which together provide
superior service, infrastructure and amenities as well as access to some of the finest skiing
and snowboarding in the world.
Guests incentives are also provided through Vail Resorts is an aggressive competitor in
the new PEAKS at Vail Resorts frequent skier markets near and far. In Denver and the
loyalry program. Modeled after an airline-sryle sttrrounding Colorado communities, for
frequent flyer program, it awards guests points example, the Company launched in 1997 its
for skiing, dining, lodging and private lessons most aggressive ever marketing effort to attract
that can be redeemed for lift tickets and other local skiers. The Company has been equally
32 activities. Uail Resorts has also intensified aggressive across the nation and around the
its direct marketing efforts to its extensive world, working with travel distributors in
database ofpast customers. Last year, the marketing to consumers throughout the U.S.,
Company sent more than seven million pieces Canada and Mexico, as well as to the large
of direct mail to past or potential guests. skiing populations in Europe and South
America.
Hostirag evenCS tlaat veceiveglobal news coverage is just ane of the activities thatgets Tlail Resorts teru
nFnrillions of dollnrs nnrrually iri free pi4bliiiry.
. 't~
a
~ , - • ~
:F
r
.
, . ,~.a<+ x
AOIZ
The Coinpany expects to have huradreds of thousancls
,
of consiEmers with active PEAKS at Vail Resorts
• membevs{zips by the end o,f the 1997-1998 ski season. tiI~
AIRPORT ACCESS
The Company's resorts are easily accessible to national and international guests through
two airports, Vail/Eagle County and Denver International (DIA). To make it even more
convenient for destination guests, the Company has worked closely with major national
airlines to significantly increase service at Uail/Eagle, which is located just 25 minutes from
Beaver Creek and gives an enormous competitive advantage for Vail Resorts. As a result, the
number of daily non-stop jet flights, primarily on 757 aircraft to and from major cities has
grown substantially. Vail/Eagle County Airport offers non-stop jet service between the
Vail Valley and New York LaGuardia, Newark, Washington, Atlanta, Miami, Chicago,
Minneapolis, Detroit, Dallas/Fort Worth, Houston, Denver and Los Angeles. During the
1996-1997 ski season, approximately 42% of Vail and Beaver Creek destination guests
arrived through Vail/Eagle, up from 9% in 1990. Total scheduled seats for the 1997-1998
ski season exceed the 300,000 mark, an increase of 14% over the previous season.
The Company also benefits from DIA, G ao w-r Ei Irv SEnr C n Yn cIr Y nr
the newest airport in the United States and V n 1 L/ E a c LE C O U N T Y A I R P O R T
among the most modern in the world. Thanks seats)
to parallel runways and state-of-the-art air ~
traffic control systems, delay rates at DIA are
among the lowest in the United States - a 250 33
remarkable achievement for an airport in a ,
winter climate.
With DIA serving as a major airline hub, 150
and with Uail/Eagle County Airport offering
so much convenicnce, the Company believes
its extensive airline access gives it a significant 0
competitive advantage over inost other North
90 91 92 93 94 95 96 97 98
American destination ski resorts. The 0
Company intends to continue to work with
its airline partners to even further increase
airline access to its resorts.
r-~
-
~ ' 4 •
~
:
f
.~~iirriiitti, (.~~iilu~inl~l, U~'fi~, :Aui~liii•r,i iud 1 iin~~! ;i~i ~.iin~ I iil; l:r~lc (;~iini~.lu~>ar~ ~i ur~ ;unir%r.
TECHNOLOGY
Vail Resorts has long recognized the potential of information technology to enhance
service levels and convenience. With that in mind, the Company has developed a
comprehensive multi-year plan to expand and enhance its technological capabilities.
With much of the plan complete for the 1997-1998 ski season, guests will benefit from
the PEAKS at Vail Resorts loyalty program as well as from added conveniences such
as the ability to bypass the ticket window and proceed directly to the ski lift by displaying
photo identification linked to their credit cards. The Company is also providing guests
the convenience of a"cashless" vacation, where guests can use their ski pass to pay for
lunch, retail purchases, and ski and snowboard lessons. In addition, Vail Resorts'
completely redesigned, interactive internet site allows guests to book their vacations
and check up-to-the-minute satellite weather and snow conditions.
These and other technological useful information to front-line personnel. It
improvements provide significant benefits to is also a valuable tool for direct marketing and
Vail Resorts as well. Bar code lift ticket promotional activities. To gain maximum
scanning systems allow for fully benefit from its technology, the Company is
34 interchangeable lift tickets at the Company's integrating systems that existed at Breckenridge
four resorts. The development of an and Keystone with those of Vail and Beaver
integrated customer database tracking guest Creek.
preferences and spending patterns provides
1 ~ I~ail Resort,s information systems allow its
guests interchangeable lift tickets, freguent
0o skier program membership and a unigue
ci~`t?FS vesort-wide charging privilege that allows
_ Cot_o?tAnp ~ guests to bypass the ticket windows and
enjoy the convenience of a cashless vacation.
i
.0 v
~
~
PEOPLE AND SERVICES
Our guests arrive at our resorts anticipating the thrill of skiing or snowboarding, the
pleasure of a fine dinner, the chance to shop for unique items they cannot find back home,
or simply the enjoyment of taking a stroll through our base villages. To make these
vacation experiences possible, Vail Resorts maintains an uncompromising commitment
to delivering the highest-quality service. That commitment has guided us for 35 years and
has helped make our resorts synonymous throughout the world with quality. On the front
lines delivering this service are our 8,000 employees, who consistently demonstrate how
much they care about serving our guests.
The commitment of our employees is While no service entiry can achieve
evident throughout Vail Resorts' operations. perfection, we do strive to maintain an
Representatives at central reservations help absolute passion for quality. At Vail Resorts,
our guests plan their vacations. Ski patrol, lift we recognize that quality is measured in the
operators and other on-mountain staff help details. That we are able to get so many of
ensure the highest-qualiry ski and snowboard those details right is a testament to the
experience. Ski School instructors help our professionalism, hard work and dedication of 35
guests improve their skills and confidence our people.
on the slopes. Friendly, professional staff at
our restaurants, stores and lodges enhance
every visit.
~
~ << j ~~,,s•, : ~~,,R„
.
TMT1
~ ~ •
~
S
v • . ~
~ ~ . { /i.- . ^ . . O
~~r~. ab•~+.
e. » .
m r %
) 1 /f$
.
i ~~~:II~
AN
A/
~ C, )i! Ipu1,
Vail Resorts' commitment to excellerice ingrooming is
• x" unmatched. The Company's extensive snowcat fleet is the
- largest of any U.S. ski company and providesguests with
impeccablY Sroomed terrain each and everY daY.
What linlu our employees and ouvXuests
is a passion fov skiing and sriowboarding.
• •
Financial performance
r i v e s
FUTURE GROWTH
.
VAIL RESORTS, INC.'s commitment
to innovation and excellence for its
guests produced recordfinancial results
in fiscal 1997,
The Company is well positioned to
build on this success in fiscal 1998.
i
I
j Selected Consolidated Financial Data
~ The following table presents selected historical consolidated financial data of the Com an for the r'
p y pe iods
~ indicated. The financial data for the years ended September 30, 1995, 1996 and 1997 are derived from the
~ consolidated financial statements of the Company, which have been audited by Arthur Andersen LLP,
, independent accountants. The unaudited pro forma results of operations for the year ended September 30,
1997 assume that the acquisition of Breckenridge and Keystone mountain resorts ("the Acquired Resorts")
and the Initial Public Offering ("IPO") occurred on October 1, 1996, rather than the actual January 3, 1997
I acquisition date and February 4, 1997 IPO date. These pro forma results are not necessarily indicative of the
actual results of operations that would have been achieved nor are they necessarily indicative of future results
of operations. The unaudited pro forma results of operations below exclude the results of Arapahoe Basin
mountain resort, which the Company divested pursuant to a consent decree with the Department of Justice.
The data presented below are in thousands except per share amounts.
~ Pro Forma
Fiscal Year Ended
Fiscal Year Ended September 30, September 30, 199712'
1995 1996 199711' (unaudited)
Statement of Operations Data:
Revenues:
Resort $ 126,349 $ 140,288 $ 259,038 $ 291,203
Rea1 estate 16,526 48,655 71,485 71,737
Total revenues 142,875 188,943 330,523 362,940
Operating expenses:
Resort 82,305 89,890 172,715 198,315 37
Rea1 estate 14,983 40,801 66,307 66,382
Corporate expense 6,701 12,698 4,663 4,663
Depreciation and amortization 17,968 18,148 34,044 38,935
Total operating expenses 121,957 161,537 277,729 308,295
Income from operations 20,918 27,406 52,794 54,645
Net income (after-tax) 3,282 4,735 19,698 23,619
Earnings per common share $ .16 $ .22 $ .64 $ .68
Other Data:
Resort
Resort Revenue $ 126,349 $ 140,288 $ 259,038 $ 291,203
Resort Cash Flow 44,044 50,398 86,323 92,888
Skier days 2,136 2,228 4,273 4,890
Resort Revenue/skier day $ 59.15 $ 62.97 $ 60.62 $ 59.55
Real estate
Revenues from real estate sales $ 16,526 $ 48,655 $ 71,485 $ 71,737
Real estate operating profit 1,543 7,854 5,178 5,355
Real estate assets 54,858 84,055 154,925 154,925
Balance Sheet Data:
Tota1 assets $ 429,628 $ 422,612 $ 855,949 $ 855,949
Long-term debt, including current maturities 191,313 144,750 265,062 265,062
Stockholders' equity 167,694 123,907 405,666 405,666
The statement of operations for the year ended September 30, 1997 indudes the results of the Acguired Resorts for the 270-day period from
january 4, 1997 to September 30, 1997.
/zl Pro forma fiscal 1997 results are presented excludinA a one-time, pre-tax, $2.2 million reorganization charge incurred during the third quarter
of fiscal 9997.
;
Management's Discussion and Analysis of Financial Condition '
and Results of Operations
The following discussion and analysis of financial The Company has elected to change its fiscal
condition and results of operations of the Company year end from September 30 to July 31. Accordingly,
should be read in conjunction with the consolidated the Company's fiscal year 1998 will end on July 31,
financial statements as of September 30, 1997 and 1998 and consist of ten months. The Company will
1996 and for the years ended September 30, 1997, file quarterly reports for fiscal 1998 for the interim
1996 and 1995, included in Item 8 to this Form periods ending January 31, 1998 and April 30, 1998.
10-K, which provide additional information
regarding financial condition and operating results. Results of Operations
This Management's Discussion and Analysis
contains information regarding Resort Cash Flow. Fiscal Year Ended September 30, 1997
Resort Cash Flow is defined as revenue from resort ("fiscal 1997") Versus Fiscal Year Ended
operations less resort operating expenses, excluding September 30, 1996 ("fiscal 1996")
depreciation and amortization. Resort Cash Flow
is not a term that has an established meaning under The actual results of fiscal 1997 versus the actual
generally accepted accounting principles. The results of fiscal 1996 discussed below are not
Company has included information concerning comparable due to the acquisition of the Acquired
Resort Cash Flow because management believes Resorts by the Company on January 3, 1997.
it is an indicative measure of a resort company's Accordingly, the usefulness of the comparisons
operating performance and is generally used by presented below is limited as fiscal 1997 includes the
investors to evaluate companies in the resort results of the Acquired Resorts since January 3,
38 industry. Resart Cash Flow does not purport to 1997 while fiscal 1996 does not include any results
represent cash provided by operating activities and of the Acquired Resorts. Please see pro forma
should not be considered in isolation or as a comparisons elsewhere in this Management's
substitute for measures of performance prepared Discussion and Analysis.
in accordance with generally accepted accounting
principles. Furthermore, Resort Cash Flow is not R e s o r t R e v e n u e Resort Revenue for fiscal
available for the discretionary use of management 1997 was $259.0 million, an increase of $118.8
and, prior to the payment of dividends, the million, or 84J%, compared to fiscal 1996. The
Company uses Resort Cash Flow to meet its capital increase was attributable primarily to (i) the
expenditure and debt service requirements. inclusion of the results of the Acquired Resorts from
On January 3, 1997, the Company acquired the January 4, 1997 ($104.8 million) and (ii) increases
Breckenridge, Keystone and Arapahoe Basin in lift ticket, ski school, food service, retail and
mountain resorts as well as significant related real rental, hospitality and other revenues.
estate interests and developable land. Pursuant to a
consent decree with the United States Department R e s o r t O p e r a t i n g E x p e n s e s Operating
of Justice, the Company divested the Arapahoe expenses from resort operations ("Resort Operating
Basin Mountain Resort on September 5, 1997. (See Expenses") were $172.7 million for fiscal 1997,
Note 3 to the consolidated financial statements.) representing an increase of $82.8 million, or 92.1%, as
The Breckenridge and Keystone mountain resorts compared to fiscal 1996. The increase in Resort
are referred to herein as the "Acquired Resorts" Operating Expenses is primarily attributable to
The Company's business is seasonal. Historically (i) the indusion of the results of the Acquired Resorts
the Company has generated the vast majority of from January 4, 1997 ($69.1 million), (ii) increased
its revenues in the first and second quarters of each variable expenses resulting from the increased level of
fiscal year. The Company typically has negative Vail/Beaver Creek Resort Revenue and skier days in
Resort Cash Flow and reports losses for the third fiscal 1997, (iii) expenses associated with new
and fourth quarters of each fiscal year. Vail/Beaver Creek food service and retail and rental
`
operations and (iv) a one-time reorganizarion charge million as compared to fiscal 1996. For periods prior
of $2.2 million in the third quarter of fiscal 1997. to fiscal 1997, corporate expense included the costs
associated with the Company's holding company
R e s o r t C a s h F l o w Resort Cash Flow for structure and overseeing multiple lines of business,
fiscal 1997 was $863 million, an increase of $35.9 including the discontinued operations. In fiscal
million, or 71.2%, compared to fiscal 1996. The 1997, corporate expense includes certain personnel,
increase in Resort Cash Flow is due primarily to tax, legal, directors' and officers' insurance and other
the inclusion of the results of the Acquired Resorts consulting fees relating solely to the Company's
from January 4, 1997 ($35J million) and the resort and real estate operations. Corporate expense
increased level of Vail/Beaver Creek Resort for fiscal 1996 includes the following nonrecurring
Revenue, offset by increased expenses related to charges: (i) $2.1 million related to the termination
new operations as described above. of an employment agreement with the Company's
former Chairman and Chief Executive Officer,
R e a I E s t a t e R e v e n u e s Revenues from (ii) $4.5 million related to payments to certain
real estate operations far fiscal 1997 were $71.5 holders of employee stock options, and (iii) $1.9
million, an increase of $22.8 million, compared to million of compensation expense related to the
fiscal 1996. Revenue for fiscal 1997 consists exercise of stock options by the Company's former
primarily of the sales of 65 single family homesites Chairman and Chief Executive Of£icer. Excluding
in the Bachelor Gulch Village development which the effect of those items, corporate expense
totaled $47.5 million, two condominiums in the increased $0.4 million.
Golden Peak base facility totaling $8.0 million, 39
various condominiums in Beaver Creek Village D e p r e c i a t i o n a n d A m o r t i z a t i o n
totaling $4.2 million and Arrowhead Village land Depreciation and amortization expense was $34.0
sales of approximately $5.1 million. Revenue for million for fiscal 1997, an increase of $15.9 million,
fiscal 1996 consisted primarily of the sales of 30 as compared to fiscal 1996. The increase was
single family homesites in the Strawberry Park primarily attributable to the inclusion of the results
development at Beaver Creek Resort which totaled of the Acquired Resorts from January 4, 1997 ($14.1
$30.9 million. million) and Uail/Beaver Creek capital expenditures
made in fiscal 1996 and the first quarter of fiscal 1997.
Real Estate Operating Expenses Real
estate operating expenses f o r fiscal 1997 were $66.3 I n t e r e s t E x p e n s e During fiscal 1997 and
million, an increase of $25.5 million, compared to fiscal 1996, the Company recorded interest expense
fiscal 1996. Real estate cost of sales for fiscal 1997 of $20.3 million and $14.9 million, respectively,
consists primarily of the cost of sales and real estate which relates primarily to the Company's Senior
coirun.issions associated with the sale of 65 single Subordinated Notes, the Industrial Development
family homesites in the Bachelor Gulch Village Bonds, and the Company's credit facilities. The
development, two Golden Peak condominiums, increase in interest expense from fiscal 1996 to
various condominiums in Beaver Creek Village and fiscal 1997, is attributable to the interest incurred on
Arrowhead Village land sales. Real estate cost of the $165 nullion in debt assumed in the acquisition of
sales for fiscal 1996 consisted primarily of the cost of the Acquired Resorts and the contractual redemption
sales and real estate commissions associated with the premium incurred in the early redemption of the
sale of 30 single family homesites in the Strawberry 12 %4% Senior Subordinated Notes due 2004, parrially
Park development at Beaver Creek Resort. offset by interest reductions due to redemptions
totaling $54.5 million in principal amount of Senior
C o r p o r a t e E x p e n s e Corporate expense was Subordinated Notes in the first half of fiscal 1996.
$4.7 million for fiscal 1997, a decrease of $8.0 See "Liquidity and Capital Resources"
Management's Discussion and Analysis of Financial Condition
and Results of Operations (continued)
Fiscal 1996 Versus Year Ended September 30, Cash Flow as a percentage of Resort Revenue
1995 ("fiscal 1995") increased to 35.9% for fiscal 1996 as compared
to 349% for fiscal 1995. The increase in Resort
R e s o r t R e v e n u e Resort Revenue for fiscal Cash Flow is primarily due to the increase in skier
1996 was $140.3 million, an increase of $13.9 days and ETP as discussed above.
million, or 11.0%, compared to fiscal 1995. The
increase was attributable primarily to (i) an 8.4% R e a 1 E s t a t e R e v e n u e s Revenues from real
increase in lift ticket revenue due to a 4.3% increase estate operations for fiscal 1996 were $48.7 million,
in skier days (a 5.3% increase at Vail Mountain and an increase of $32.1 million, compared to fiscal
a 1.5% increase at Beaver Creek Mountain) and an 1995. The increase is due primarily to the closings
increase in effective ricket price (defined as total lift of sales of 30 single family lots in the Strawberry
ticket revenue divided by total skier days) ("ETP") Park development at Beaver Creek Resort in
from $29.96 to $31.12, or 3.9%, (ii) a 9.6% increase December 1995 and February 1996, which
in ski school revenue due to increases in lesson generated $30.9 million in gross proceeds.
prices and increases in lesson volume driven
primarily by snowboarding and children's lessons, R e a 1 E s t a t e O p e r a t i n g E x p e n s e s Real
(iii) a 9.8% increase in food service revenues due estate operating expenses for fiscal 1996 were $40.8
to price increases and the increase in skier days, million, an increase of $25.8 million, compared to
(iv) a 19.1% increase in retail and rental revenues fiscal 1995. The increase resulted primarily ttom
due to favorable changes in product mix, the growth the cost of sales and commissions associated with the
40 in popularity of snowboarding and new ski sale of the Strawberry Park lots which totaled
technology, and the increase in skier days, and (v) a $24J million.
17.2% increase in hospitality revenues due primarily
to enhanced marketing efforts for the Company's C o r p o r a t e E x p e n s e Corporate expense
property management activities. was $12.7 million for fiscal 1996, an increase of
$6.0 million as compared to fiscal 1995. Corporate
R e s o r t O p e r a t i n g E x p e n s e s Operating expense far fiscal 1996 includes the following
expenses from resart operations ("Resort Operating nonrecurring charges: (i) $2.1 million related to
Expenses") were $89.9 million for fiscal 1996, the termination of an employment agreement
representing an increase of $7.6 million, or 9.2%, as with the Company's former Chairman and Chief
compared to fiscal 1995. As a percentage of Resort Executive Officer, (ii) $4.5 million related to
Revenue, Resort Operating Expenses declined from payments to certain holders of employee stock
65.1% to 64.1% in fiscal 1996. The increase in options, and (iii) $1.9 million of compensation
Resort Operating Expenses is primarily attributable expense related to the exercise of stock options
to (i) increased variable expenses resulting from the by the Company's former Chairman and
increased level of Resort Revenue and skier days in Chief Executive Officer. Excluding the effect
fiscal 1996, (ii) a$1.6 million increase in the accrual of those items, corporate expense decreased
for long term incentive compensation associated $2.5 million. This decrease was primarily due
with the improvement in the operating results of to the inclusion in fiscal 1995, of $1.6 million
the resorts segment during fiscal 1996, and (iii) a of compensation expense related to shares of
$1.1 million increase in labor related expenses Common Stock granted to the Company's former
due to expanded operations. Chief Executive Officer pursuant to an employment
agreement dated October 8, 1992. Those shares
R e c o r t C a s h F 1 o w Resort Cash Flow for were earned over the three year period beginning
fiscal 1996 was $50.4 million, an increase of $6.4 on the date of the employment agreement and
million, or 14.4%, compared to fiscal 1995. Resort ending on October 8, 1995. Accordingly,
compensation expense was charged to corporate pension liability related to three founders of the
expense ratably over that period. The remaining Company, (iii) a$600,000 increase in reserves
decrease was attributable to reductions in payroll related to a change in the estimate of the Company's
expense and other office expenses related to the obligation to a medical research foundation, and
partial closure of the Company's Denver office as (iv) $373,000 in income related to a favorable
of December 31, 1995. retrospective adjustment on a worker's compensation
insurance policy of a former subsidiary of the
D e p r e c i a t i o n a n d A m o r t i z a t i o n Company. The significant components of other
Depreciation and amortization expense increased by income (expense) for fiscal 1995 are (i) a$1.2
$180,000 for fiscal 1996 over fiscal 1995, primarily million gain on the sale of securities, (ii) income
due to capital expenditures made in fiscal 1995. of $687,000 related to the elimination of reserves
for pre-petition bankruptcy claims and (iii) $1.6
I n t e r e s t E x p e n s e During fiscal 1996 and million in income related to a change in the
fiscal 1995, the Company recorded interest expense estimate o£the Company's obligation to a medical
of$14.9 million and $19.5 million, respectively, research foundation.
which relates primarily to the Company's Senior
Subordinated Notes, the Industrial Development Pro Forma Results of Operations -
Bonds, and the Company's existing credit facilities. Fiscal 1997 Versus Fiscal 1996
The decrease in interest expense from fiscal 1995 * * * *
to fiscal 1996, is attributable to the redemptions of The following unaudited pro forma results of
$30 million and $24.5 million in principal amount operations of the Company for fiscal 1997 and 41
of Senior Subordinated Notes on December 11, fiscal 1996 assume that the Acquisition occurred
1995 and February 2, 1996, respectively, offset on October 1, 1995. The unaudited pro forma
by call premiums paid in connection with those financial information below excludes the results of
redemptions. See "Liquidity and Capital Resources." Arapahoe Basin mountain resort, which the Company
divested on September 5, 1997. Resort Operating
L o s s o n d i s p o s a 1 o f f i x e d a s s e t s The Expenses and Resort Cash Flow for the year ended
loss on disposal of fixed assets for fiscal 1996 was September 30, 1997, include the effect of a one-rime
$2.6 million compared to $849,000 for fiscal 1995. restructuring charge in the amount of $2.2 million
The loss for fiscal 1996 consists primarily of a recorded in the third quarter of fiscal 1997. These
$2.3 million loss on the retirement of the Lionshead unaudited pro forma results are not necessarily
gondola and a$340,000 loss on the retirement of the indicative of the actual results of operations that would
Golden Peak chairlift. Both lifts have been replaced have been achieved nor are they necessarily indicative
with upgraded equipment. The loss for fiscal 1995 of future results of operations.
Consists primarily of a$600,000 loss on the write off Years ended September 30,
of hft equipment whiCh was replaCed during an In thousands (unaudited) 1997 1996
upgrade of a Uail Mountain chairlift. Resorc Revenue $ 291,203 $ 267,409
Resort Operating Expenses 200,515 182,581
Resort Cash Flow 90,688 84,828
Other income (expense) Thesignificant
components of other income (expense) for fiscal
1996 are (i) a$725,000 increase in the reserves R e s o r t R e v e n u e Pro forma Resort Revenue
related to the Company's indemniry to the for the year ended September 30, 1997 was $291.2
purchaser of a former subsidiary o£ the Company, million, an increase of $23.8 million, or 8.9%,
(ii) a$690,000 increase in the estimate of the compared to the year ended September 30, 1996.
,
Management's Discussion and Analysis of Financial Condition
and Results of Operations (continued)
Revenue by category is as follows: R e s o r t O p e r a t i n g E x p e n s e s Pro Forma
Years ended September 30, Resort Operating Expenses were $200.5 million for
In thousands 1997 1996 the year ended September 30, 1997, compared to
Lifr cickecs $ 135,884 $ 127,663 $182.6 million for the year ended September 30,
Ski school 34,471 33,091 1996. Resort operating expenses as a percentage
Food service 43,704 38,133
Recail and rencal 17,624 13,362 of Resort Revenue increased from 68.3% to 68.9%
Hospitaliry 33,984 31,822 in the year ended September 30, 1997. The increase
Ocher 25,536 23,338 in Resort Operating Expenses is attributable to
Total revenue $ 291,203 $ 267,409 (i) increased variable expenses resulting from the
increased level of Resort Revenue, (ii) expenses
Lift ticket revenue increased due to an increase in associated with new food service and retail and rental
effective ticket price from $27.49 to $27.79, or operations, (iii) increases in the operating expenses
1.1% and a 5.3% increase in skier days. The increase of the Acquired Resorts and (iv) a one-time
in ETP is primarily due to increases in the lead reorganization charge of $2.2 million in the third
ticket prices at each resort, offset by higher usage quarter of fiscal 1997.
of discounted tickets targeted at skiers from the
Denver/Colorado Springs area and an increase in R e s o r t C a s h F l o w Pro Forma Resort
late season skier days which tend to have a lower Cash Flow was $90.7 million for the year ended
ETP. The increase in skier days was due primarily September 30, 1997; compared to $84.8 million
to (i) an increase in snowboarders at Keystone for the year ended September 30, 1996. Resort
42 Mountain as the 1996-97 ski season represented the Cash Flow as a percentage of Resort Revenue
first time snowboarding had been permitted on decreased from 31.7% to 31.1% in the year ended
Keystone Mountain and (ii) increases at Beaver September 30, 1997. The increase in Resort Cash
Creek Mountain due in part to the 30% terrain Flow is due primarily to the increased level of
expansion with the opening of Bachelor Gulch. Resart Revenue, offset by increased expenses related
Ski school revenue increased 4.2% due primarily to new operations, a one-time reorganization charge
to increases in the number of snowboarding lessons of $2.2 million and increases in the Acquired
and children's lessons sold. Food service revenue Resorts' operating expenses as described above.
increased 14.6% primarily as a result of the opening
of six new operations, expansion of existing Liquidity and Capital Resources
operations and price increases at Vail and Beaver * * * *
Creek mountains. Retail and rental revenues The Company has historically provided funds for
increased 31.9% due to the opening of nine new debt service, capital expenditures and acquisitions
operations and the repositioning of existing through a combination of cash flow from
operations to take advantage of current trends such operations, short term and long term borrowings
as snowboarding, as well as greater product diversity and sales of real estate.
throughout the Company's retail operations. The Company's cash flows from investing
Hospitality revenue increased 6.8°/o primarily due activities have historically consisted of payments
to (i) increases in property management revenue at for acquisitions, resort capital expenditures and
Beaver Creek Resort attributable to increases in the investments in real estate. In fiscal 1997, cash used
number of units under management and the average in investing activities of $251.8 million was
daily revenue per unit and (ii) increases in lodging attributable primarily to cash paid for the Acquired
revenue at Company ovvned and managed lodging Resorts, including direct costs and offset by cash
facilities at Beaver Creek Resort and Keystone acquired, of $146.4 million, resort capital
Resort attributable to price increases and higher expenditures of $51.0 million and investments in
occupancy rates. real estate of $56.9 million.
Resort capital expenditures for the year Breckenridge Mountain, (iii) expansion of the
ended September 30, 1997 were $51.0 million. groorning fleets at Vail and Beaver Creek mountains,
Investments in real estate for that period were $56.9 (iv) upgrades to the back office and front line
million, which included $7.0 million of mountain information systems and (v) infrastructure for the
improvements, including ski lifts and snowmaking Category III expansion on Vail Mountain.
equipment, which are related to real estate Investments in real estate in fiscal 1998 are
development but which will also benefit resort anticipated to be between $40.0 and $50.0 million.
operations. The primary projects included in The primary projects are anticipated to include (i)
resort capiCal expenditures were (i) the new continuing infrastructure related to Bachelor Gulch
Lionshead gondola, (ii) The renovation and Village and Arrowhead Village, (ii) golf course
expansion of the Eagles Nest facility and the development, (iii) investments in developable land at
creation of Adventure Ridge and (iii) new strategic locations at the four ski resorts and (iv)
retail, restaurant and skier service facilities in the investments in a joint venture to develop properry
renovated Golden Peak base facility. The primary located at the base of Keystone Mountain.
projects included in investments in real estate were The Company continues to pursue strategic
(i) the completion of six luxury condominiums resort acquisition opportunities as well as
located in the new Golden Peak base facility, opportunities to expand its presence in lodging,
(ii) infrastructure related to the Bachelor Gulch properry management, retail, food service and
real estate development, (rii) construcrion costs commercial leasing activities within its existing
associated with Beaver Creek Village Center, resorts. See "Recent Developments."
(iv) infrastructure related to Arrowhead Village, The Company generated cash from financing 43
(v) infrastructure related to the snowmaking reservoir activities of $151.0 nullion in fiscal 1997, consisting
at Beaver Creek, Bachelor Gulch and Arrowhead of proceeds £rom the initial public offering, net
villages and (vi) a new high speed quad chairlift at of direct costs, of $98.2 nullion, proceeds from
Beaver Creek Resort. borrowings under long-term debt of $235.0 million,
On January 3, 1997, the Company acquired the of£set by payments on long-term debt of $140.0
Breckenridge, Keystone and Arapahoe Basin million and payments under the Rights of $42.2
mountain resorts as well as significant related real million.
estate interests and developable land. In connection At September 30, 1996, the Company had
with this acquisition, the Company paid cash of $44.0 million in outstanding borrowings under its
$139.7 million, assumed indebtedness of $59.8 former credit facilities. Through January 3, 1997,
million and issued 7,554,406 shares of Common the Company borrowed an additional $26.0 nullion
Stock valued at $151.1 nvllion to Ralston Foods, under those facilities. On January 3, 1997, in
Inc. Direct expenses incurred in the transaction connection with the closing of the Acquisition, all
approximated $9.0 million. Pursuant to a Consent amounts outstanding under the Company's former
Decree with the United States Department of credit facilities were repaid with proceeds from the
Justice, the Company was required to divest the Company's Credit Facilities. The Credit Facilities
Arapahoe Basin mountain resort. On September 5, provide for debt financing up to an aggregate
1997, the Company sold the Arapahoe Basin principal amount of $340 million and consist of
mountain resort for a sum of $4.0 million. (i) a$175 million Revolving Credit Facility, (ii)
The Company estimates that it will make a$115 million Tranche A Term Loan Facility and
resort capital expenditures totaling between $50.0 (iii) a$50 million Tranche B Term Loan Faciliry
and $70.0 million in fiscal 1998. The primary (together with Tranche A, the "Term Loan
projects are anticipated to include (i) trail and Facilities"). The Term Loan Facilities were used to
infrastructure improvements at Keystone Mountain, refinance $139.7 nullion of the Acquisition purchase
(ii) terrain and facilities improvements at price and the balanee of the Term Loan Facilities
Management's Discussion and Analysis of Financial Condition
and Results of Operations (continued)
was used to repay borrowings under the Company's only to the extent that it received proceeds under
former credit facilities. The Revolving Credit certain real estate contracts outstanding at September
Faciliry matures on April 15, 2003. The minimum 30, 1996. As of September 30, 1997, the Company
amortization under the Term Loan Facilities is had received gross proceeds under the applicable
$11.5 million, $14.0 million, $19.0 million, $21.5 contracts totaling $499 million and had made
million, $26.5 million, $31.5 million and $41.0 payments under the Rights of $42.2 million. In
million during the fiscal years ending September 30, addition, the Company's former Chairman and
1998, 1999, 2000, 2001, 2002, 2003 and 2004, Chief Executive Officer waived his right to receive
respectively. The Company is also required to make approximately $2.7 million under the Rights in
mandatory amortization payments under the Term exchange for the payment of the exercise price on
Loan Facilities with excess cash flow (as defined in certain stock warrants that he held. On October 31,
the Credit Agreement), proceeds from asset sales, 1997, the Company paid all remaining amounts due
and proceeds from certain equiry and debt offerings. under the Rights.
During the year ended September 30, 1997, the Based on current levels of operations and cash
Company repaid credit facility borrowings totaling availability, the Company believes that it will be able
$77.0 million. to satisfy its debt service and capital expenditure
The Credit Facilities require that no more than requirements from cash flow from operations, and
$125.0 million in aggregate be outstanding under borrowings under the Credit Facilities.
the Revolving Credit Facility for a period of 30 The Company believes that inflation during the
consecutive days during each fiscal year, such period past three years has had little effect on its results of
44 to include April 15. The proceeds of loans made operations and any impact on costs has been largely
under the Revolving Credit Facility may be used to offset by increased pricing.
fund the Company's working capital needs, capital The Company is currently in the process of
expenditures and other general corporate purposes, evaluating its software and hardware for Year 2000
including the issuance of letters of credit. compliance. Although a final assessment has not
The Company consummated its initial public been completed, the Company believes that the
offering (the "Offering") on February 7, 1997. costs to be incurred will not be material to the
The Company sold 5 million shares of common overall presentation of the consolidated financial
stock in the Offering at a price of $22.00 per share. statements.
Net proceeds to the Company after direct expenses The Company uses interest rate swaps to modify
of the Offering totaled $98.2 million. The its exposure to interest rate movements and reduce
Company used $68.6 million of the proceeds to its borrowing costs. The company enters into interest
redeem all of the Senior Subordinated Notes, rate swap agreements for certain of its floating rate
including a contractual early redemption premium borrowings outstanding under its Term Credit
of 4% and accrued interest up to the redemption Facilities. The Company's Term Credit Facilities and
date of March 10, 1997. The Company used the the Revolving Credit facility are indexed to LIBOR.
remainder of the proceeds for general corporate The Company utilizes a sensitivity analysis technique
purposes. The Company was not required to use to evaluate the effect that changes in LIBOR will
any of the proceeds from the Offering to make have on the Company's borrowings that are indexed
payments under the Term Loan Facilities. to that rate. At September 30, 1997, the borrowings
On September 25, 1996, the Company declared that were not subject to interest rate swap
a right to receive up to $2.44 per share of Common agreements totaled $127 million. Based on the
Stock to all stockholders of record on October 11, average floating rating borrowings outstanding
1996, with a maximum aggregate amount payable throughout fiscal 1997, a 100 basis point change
under the Rights of $50.5 inillion. The Company in LIBOR, would cause the Company's monthly
was obligated to make payments under the Rights interest expense to change by $111,000. The
Company believes that this amount is not significant In December 1997, the Company received a
to the earnings of the Company. comrrtitment from its lender, as agent, to amend the
Credit Facilities (the "Amended Credit Facilities").
Recent Developments The Amended Credit Facilities will provide for an
* * * * increase in debt financing from $340 million to an
On October 1, 1997, the Company purchased the aggregate principal amount of $450 million in the
assets constituting the Breckenridge Hilton for a Revolving Credit Facility that will mature on
total purchase price of $18.6 nullion. The purchase December 19, 2002. Interest on outstanding
price includes a cash paymenC of $18.1 million, advances under the Amended Credit Facilities is
$0.2 million in assumed liabilities and $0.3 million payable at rates based upon either LIBOR plus a
to provide for contingent consideration that may margin ranging from .50% to 1.25% or prime plus a
be paid pursuant to the purchase agreement. The margin of up to .125%.
Breckenridge Hilton is a 208-room full service
hotel, located at the base of Breckenridge
Mountain, and includes dining, conference and
fitness facilities. The acquisition was accounted
for as a purchase combination.
On October 7, 1997, the Company purchased
100% of the outstanding stock of Lodge Properties,
Inc., a Colorado corporation ("LPP'), for a total
purchase price of $30.2 million. LPI owns and 45
operates The Lodge at Vail (the "Lodge"), a
59-room hotel located in Vail, Colorado, and
provides management services to an additional 40
condominiums. The Lodge includes restaurant and
conference facilities as well as other amenities. In
addition to the hotel property, LPI owns a parcel of
developable land strategically located at the primary
base area of Vail Mountain. In addition to the cash
purchase price, the Company expects to incur
approximately $9.2 million to complete a new wing
of the hotel which is currently under construction.
The acquisition was accounted for as a purchase
combination.
The Company funded the above acquisitions
with proceeds from its Revolving Credit Facilities.
On October 10, 1997, the Company borrowed
an additional $32 million under a new line of credit
with its Credit Facility provider ("the Line of
Credit"), the proceeds of which were used to reduce
the Revolving Credit Facility balance. Borrowings
under the Line of Credit bear interest annually at
the Company's option at the rate of LIBOR (5.7%
at September 30, 1997) plus a margin ranging
from 0.5% to 125% ar prime plus a margin of
up to 0.125%.
Consolidated Balance Sheets
Years ended September 30,
In thousands, except share and per share amounts 1997 1996
Assets
Current assets:
Cash and cash equivalents $ 8,142 $ 5,622
Restricted cash 6,561 7,090
Receivables 17,638 4,660
Notes receivable 4,469 -
Inventories 10,789 4,639
Deferred income taxes (Note 7) 24,500 17,200
Other current assets 4,253 5,490
Total current assets 76,352 44,701
Property, plant, and equipment, net (Note 5) 411,117 197,279
Real estate held for sale 154,925 84,055
Deferred charges and other assets 12,217 5,940
Notes receivable, noncurrent portion 1,073 5,581
Intangible assets, net (Note 5) 200,265 85,056
Total assets $ 855,949 $ 422,612
Liabilities and Stockholders' Equity
Current liabilities:
46 Accounts payable and accrued expenses (Note 5) $ 70,171 $ 48,096
Income taxes payable 325 325
Rights payable to stockholders (Note 9) 5,707 50,513
Long-term debt due within one year (Note 4) 1,715 63
Total current liabilities 77,918 98,997
Long-term debt (Note 4) 263,347 144,687
Other long-term liabilities 23,281 15,521
Deferred income taxes (Note 7) 85,737 39,500
Commitments and contingencies (Note 9)
Stockholders' equity (Notes 1 and 12):
Preferred stock, $.01 par value 25,000,000 shares authorized, no shares
issued and outstanding - -
Common stock-
Class A common stock, $.01 par value, 20,000,000 shares authorized,
11,639,834 and 12,426,220 shares issued and outstanding as of
September 30, 1997 and 1996, respectively 116 124
Common Stock, $.01 par value, 80,000,000 shares authorized,
21,765,815 and 7,573,780 shares issued and outstanding as of
September 30, 1997 and 1996, respectively 218 76
Additional paid-in capital 385,634 123,707
Retained earnings 19,698 -
Total stockholders' equity 405,666 123,907
Total liabilities and stockholders' equity $ 855,949 $ 422,612
The accompanying notes to consolidated financial statements are an integral part of these balance sheets.
~
Consolidated Statement of Operations
Years ended September 30,
In thousands, except share and per share amounts 1997 1996 1995
Net revenues:
Resort $ 259,038 $ 140,288 $ 126,349
Real estate 71,485 48,655 16,526
Total net revenues 330,523 188,943 142,875
Operating expenses:
Resort 172,715 89,890 82,305
Real estate 66,307 40,801 14,983
Corporate expense 4,663 12,698 6,701
Depreciation and amortization 34,044 18,148 17,968
Total operating expenses 277,729 161,537 121,957
Income from operations 52,794 27,406 20,918
Other income (expense):
Investment income 1,762 586 3,295
Interest expense (20,308) (14,904) (19,498)
Loss on disposal of fixed assets (182) (2,630) (849)
Other income (expense) (383) (1,500) 3,291
Income before income taxes 33,683 8,958 7,157
Provision for income taxes (Note 7) (13,985) (4,223) (3,875)
Net income 19,698 4,735 3,282 47
Earnings per common share (Note 2):
Net income $ .64 $ .22 $ .16
Weighted average shares outstanding 30,979,448 21,455,352 20,582,776
The accompanying notes to consolidated financial statements are an integral part of these statemenu.
Consolidated Statement of Stockholders' Equiry
Common Stock Additional Retained Total
In thousands, Shares Paid-in Earnings Stockholders'
except share amounts Class A Common Total Amount Capital (Deficit) Equity
Balance, September 30, 1994 14,249,414 5,273,936 19,523,350 $ 196 $ 133,645 $ 28,653 $ 162,494
Net income for the year ended
September 30, 1995 - - - - - 3,282 3,282
Shares issued pursuant
to stock grants (Note 11) - 238,326 238,326 2 1,916 - 1,918
Shares of Class A Common Stock
converted to Common
Stock (Note 12) (1,431,722) 1,431,722 - - - - -
Balance, September 30, 1995 12,817,692 6,943,984 19,761,676 198 133,561 31,935 167,694
Net income for the year ended
September 30, 1996 - - - - - 4,735 4,735
Shares issued pursuant
to stock grants (Note 11) - 238,324 238,324 2 1,989 - 1,991
Rights payable to stockholders - - - - (13,843) (36,670) (50,513)
Shares of Class A Common Stock
converted to Common
Stock (Note 12) (391,472) 391,472 - - - - -
Balance, September 30, 1996 12,426,220 7,573,780 20,000,000 200 123,707 - 123,907
48 Net income for the year ended
September 30, 1997 - - - - - 19,698 19,698
Issuance of shares pursuant to
options exercised (Note 11) - 744,482 744,482 7 10,212 - 10,219
Issuance of shares in acquisition
of resort, net (Note 3) - 7,554,406 7,554,406 76 151,012 - 151,088
Issuance of shares in initial
public offering, net (Note 1) - 5,000,000 5,000,000 50 98,100 - 98,150
Issuance of shares in acquisition
of retail space, net - 106,761 106,761 1 2,348 - 2,349
Compensation expense related
to employee stock options - - - - 255 - 255
Shares of Class A Common
Stock converted to
Common Stock (Note 12) (786,386) 786,386 - - - - -
Balance, September 30, 1997 11,639,834 21,765,815 33,405,649 $ 334 $ 385,634 $ 19,698 $ 405,666
The auompanying notes to consolidated financial statements are an integral part of these statements.
Consolidated Statement of Cash Flows
Years ended September 30,
In thousands 1997 1996 1995
Cash flows from operating activities:
Net income $ 19,698 $ 4,735 $ 3,282
Adjustments to reconcile net income to net cash provided
by operating activities:
Depreciation and amortization 34,044 18,148 17,968
Deferred compensation payments in excess of expense (331) (814) (1,325)
Noncash cost of real estate sales 52,647 32,394 9,208
Noncash compensation related to stock grants (Note 11) 306 25 1,633
Noncash compensation related to stock options 255 1,915 -
Noncash equity income (701) - -
Deferred financing costs amortized 389 247 237
Loss on disposal of fixed assets 182 2,630 849
Deferred real estate revenue - - 1,500
Deferred income taxes, net (Note 7) 7,413 2,500 2,900
Changes in assets and liabilities:
Restricted cash 529 (575) (3,738)
Accounts receivable, net 2,089 475 (349)
Notes receivable, net (4,469) - -
Inventories (835) (418) (1,236)
Accounts payable and accrued expenses (10,712) 9,551 10,141
Other assets and liabilities 2,867 (4,947) (3,704)
Net cash provided by operating activities 103,371 65,866 37,366 49
Cash flows from investing activities:
Cash paid in resort acquisition, net of cash acquired (146,386) - -
Resort capital expenditures (51,020) (13,912) (20,320)
Investments in real estate (56,947) (40,604) (22,477)
Investment in joint venture 2,511 (200) (400)
Other - - 953
Net cash used in investing activities (251,842) (54,716) (42,244)
Cash flows from financing activities:
Proceeds from initial public offering 98,150 - -
Payments under Rights (42,175) - -
Proceeds from borrowings under long-term debt 235,000 84,000 253,400
Payments on long-term debt (139,984) (130,547) (287,741)
Net cash provided by (used in) financing activities 150,991 (46,547) (34,341)
Net increase (decrease) in cash and cash equivalents 2,520 (35,397) (39,219)
Cash and cash equivalents:
Beginning of period 5,622 41,019 80,238
End ofperiod $ 8,142 $ 5,622 $ 41,019
Cash paid for interest $ 20,166 $ 21,880 $ 13,852
Cash paid for income taxes 1,925 400 400
Supplemental disclosure of non-cash transactions:
Issuance of common stock in resort acquisition (Note 3) $ 151,088
Assumption of liabilities in resort acquisition (Note 3) $ 91,480
Option exercise (Note 11) $ 2,740
Issuance of common stock in purchase of retail space $ 2,349
The aaompanying notes to consolidated financial statements are an integral part of these statements.
~
Notes to Consolidated Financial Statements
Note 1. Basis of Presentarion Note 2. Summary of Significant Accounting
* * * * Policies
Vail Resorts, Inc. ("Vail Resorts"), is organized as
a holding company and operates through various P r i n c i p 1 e s o f C o n s o 1 i d a t i o n The
subsidiaries. Uail Resorts and its subsidiaries accompanying consolidated financial statements
(collectively, the "Company") currently operate in include the accounts of the Company and its wholly
two business segments, ski resorts and real estate owned subsidiaries. Investments in joint ventures ,
development. Vail Associates, Inc., a wholly-owned are accounted for under the equiry method. All
subsidiary of Vail Resorts, and its subsidiaries significant intercompany transactions have been
(collectively, "Vail Associates") operates one of the eliminated. Results of the operations acquired in
world's largest skiing facilities on Vail Mountain and the Acquisition have been included in the fiscal
Beaver Creek Mountain in Colorado. On January 3, 1997 consolidated statement of operations from
1997, Vail Associates acquired the Breckenridge, January 4, 1997 through September 30, 1997,
Keystone and Arapahoe Basin mountain resorts (the except that results of operations for the Arapahoe
"Acquired Resorts") and significant related real Basin mountain resort for the period of the
estate interests and developable land (the Company's ownership have been excluded.
"Acquisition"). The Company has since divested the (See pro forma financial information in Note 3.)
Arapahoe Basin mountain resort pursuant to the
Cash and Cash Equivalents The
Consent Decree with the Department of Justice (see
Company considers all highly liquid debt
Note 3). The ski resorts are operated on United
instruments with an original maturity of three
50 States Forest Service land under Term Special Use
months or less to be cash equivalents.
Permits expiring in 2031 for Vail Mountain, 2006
f o r Beaver Creek Mountain, 2029 f o r Breckenridge R e s t r i c t e d C a s h Restricted cash represents
Mountain and 2032 for Keystone Mountain. Vail amounts held as reserves for self-insured worker's
Resorts Development Company ("VRDC") is a compensation claims, and owner and guest advance
wholly-owned subsidiary of Vail Associates, Inc. and deposits held in escrow for lodging reservations.
conducts the Company's real estate development
I n v e n t o r i e s The Company's inventories consist
activities. The Company's mountain resort business
primarily of purchased retail goods, food, and spare
is seasonal with a typical ski season beginning in
parts. Inventories are stated at the lower of cost,
mid-October and continuing through mid-May.
determined using the first-in, first-out (FIFO)
In January 1997, the Company declared a 2
method, or market.
for 1 stock split on its Class A Common Stock and
Common Stock. All share and per share amounts in P r o p e r t y, P 1 a n t a n d E q u i p m e n t
the accompanying consolidated financial statements Property, plant and equipment is carried at cost net
have been adjusted to reflect this stock split. of accumulated depreciation. Depreciation is
The Company consummated an offering of calculated generally on the straight-line method
Common Stock (the "Of£ering") on February 7, based on the following useful lives:
1997. The Company sold 5 million shares of Years
Common Stock in the Offering at a price of $22.00 Land improvements 40
per share. Net proceeds to the Company after Buildings and terminals 40
Ski lifts 15
expenses of the Offering totaled $98.2 million. MachinerY e4uiPment, furniture and fixtures 3-12
Certain selling shareholders sold an additional 7.1 Automobiles and crucks 3-5
million shares in the Offering. The Company did
not receive any of the proceeds from the sale of Ski trails are depreciated over the life of their
those shares. respective forest service permits.
R e a l E s t a t e H e l d f o r S a 1 e The interest expense. Any premium paid is amortized
Company capitalizes as land held for sale the over the life of the agreement.
original acquisition cost (or appraised value as of
the Effective Date, as defined below), direct I n t a n g i b 1 e A s s e t s "Reorganization Value in
construction and development costs, properry taxes, Excess of Amounts Allocable to Identifiable Assets"
interest incurred on costs related to land under ("Excess Rearganization Value") represents the
development, and other related costs (engineering, excess of the Company's reorganization value over
surveying, landscaping, etc.) until the property the amounts allocated to the net tangible and other
reaches its intended use. The cost of sales for intangible assets of the Company upon emergence
individual parcels of real estate or condominium from bankruptcy on October 8, 1992 (the "Effective
units within a project is determined using the Date"). The company has classified as goodwill the
relative sales value method. Selling expenses are cost in excess of fair value of the net assets of
charged against income in the period incurred. companies acquired in purchase transactions.
Interest capitalized on real estate development Intangible assets are recorded net of accumulated
projects during fiscal years 1997, 1996 and 1995 amortization in the accompanying consolidated
totaled $0.5 million, $2.2 million and $1.4 million, balance sheet and amortized using the straight-line
respectively. method over their estimated useful lives as follows:
The Company is a partner in the Keystone/
Intrawest L.L.C. ("Keystone JV"), which is a joint Excess Reorganization Value 20 years
venture with Intrawest Resorts, Inc. formed to Goodwill 40 years
Tradearks 40 years
develop land at the base of Keystone Mountain. S 1
The Company contributed 500 acres of Other intangibles 3-15 years
development land as well as certain other funds to L o ng - 1 i v e d A s s e t s The Company evaluates
the joint venture. The Company's investment in potential impairment of long-lived assets and long-
the Keystone JV including the Company's equity lived assets to be disposed of in accordance with
earnings from the inception of the Keystone JV, Statement of Financial Accounting Standards No.
are reported as real estate held for sale in the 121, "Accounting for the Impairment of Long-
accompanying balance sheet as of September 30, 1997. Lived Assets and for Long-Lived Assets to be
Disposed Of" ("SFAS No. 121"). SFAS No. 121
D e f e r r e d F i n a n c i n g C o s t s Costs establishes procedures for review of recoverability,
incurred with the issuance of debt securities are and measurement of impairment if necessary, of
included in deferred charges and other assets, net long-lived assets, goodwill and certain identifiable
of accumulated amortization. Amortization is intangibles held and used by an entity. SFAS Na
charged to income over the respective original lives 121 requires that those assets be reviewed for
of the applicable debt issues and is included in impairment whenever events or changes in
interest expense. circumstances indicate that the carrying amount of
an asset may not be fully recoverable. SFAS No. 121
I n t e r e s t R a t e Ag r e e m e n t s Interest rate also requires that long-lived assets and certain
exchange agreements, defined as swaps and caps identifiable intangibles to be disposed of be reported
and floars, are effective at creating synthetic at the lower of carrying amount ar fair value less
instruments and thereby modifying the Company's estimated selling costs. As of September 30, 1997,
interest rate exposures. The Company enters into management believes that there has not been any
interest rate exchange agreements to create synthetic impairment of the Company's long-lived assets,
instruments. Net interest is accrued as either interest goodwill or other identifiable intangibles.
receivable or payable with the offset recorded in
~ _u
Notes to Consolidated Financial Statements (continued)
R e v e n u e R e c og n i t i o n Resort Revenues are in the second quarter of fiscal 1998. When adopted,
derived from a wide variery of sources, including SFAS No. 128 will replace the presentation of
sales of lift tickets, ski school tuition, food service, primary earnings per share (EPS) with basic EPS.
retail stores, equipment rental, travel reservation Basic EPS excludes dilution and is computed by
services, lodging, property and club management, dividing net income available for common
real estate brokerage, conventions, licensing and stockholders by the weighted average number of
sponsoring activities and other recreational activities, common shares outstanding for the period. Diluted
and are recognized as services are performed. EPS, which reflects the potential dilution that
Revenues from real estate sales are not recognized could occur if securities or other contracts to issue
until title has been transferred and revenue is common stock were exercised or converted, will
deferred if the receivable is subject to subordination also need to be disclosed.
until such time as all costs have been recovered.
Until the initial down payment and subsequent F a i r V a 1 u e o f F i n a n c i a 1 I n s t r u m e n t s
collection of principal and interest are by contract The recorded amounts for cash and cash equivalents,
substantial, cash received from the buyer is reported receivables, other current assets, and accounts
as a deposit on the contract. payable and accrued expenses approximate fair value
due to the short-term nature of these financial
A d v e r t i s i n g C o s t s Advertising costs are instruments. The fair value of amounts outstanding
expensed the first time the advertising takes place. under the Company's Credit Facilities approximates
Advertising expense for the years ended September book value due to the variable nature of the interest
52 30, 1997, 1996 and 1995 was $8.8 million, $6.9 rate associated with that debt. The fair values of
million and $6.3 million, respectively. At September the Company's Industrial Development Bonds have
30, 1997 and 1996, advertising costs of $1.3 million been estimated using discounted cash flow analyses
and $1.7 million are reported as current assets in the based on current borrowing rates for debt with
Company's consolidated balance sheet. similar maturities and ratings.
The estimated fair values of the Senior
I n c o m e Ta x e s The Company uses the liability Subordinated Notes and Industrial Development
method of accounting for income taxes as prescribed Bonds at September 30, 1997 and 1996 are
by Statement of Financial Accounting Standards presented below (in thousands):
("SFAS") No. 109, "Accounting for Income Taxes." Sepcember 30,
Under SFAS No. 109, a deferred tax liability or asset 1997 1996
is recognized for the effect of temporary differences Carrying Fair Carrying Fair
between financial reporting and income tax Value Value Ualae Value
reporting. Senior Subordinated
Notes - - $ 62,647 $ 76,369
IndusCrial Development
E a r n i ng s P e r S h a r e Earnings per common Bonds $ 61,263 $ 65,910 $ 37,903 $ 43,701
share is based on the weighted average number of
shares outstanding during the period after
consideration of the dilutive effect of stock grants, Us e o f E s t i m a t e s The preparation of
warrants and options (see Note 11). financial statements in conformity with generally
In February 1997, the Financial Accounting accepted accounting principles requires management
Standards Board issued SFAS No. 128, "Earnings to make estimates and assumptions that affect the
Per Share", which will be effective for the Company reported amounts of assets and liabilities, the
~
disclosure of contingent assets and liabilities at the liabilities at the date of the acquisition as follows
balance sheet date and the reported amounts of (in thousands):
revenues and expenses during the reporting period. Fair Value of
Actual results could differ from those estimates. Nec Assets Acquired
Cash $ 2,321
Accountsreceivable 15,067
S t o c k C o m p e n s a t i o n The Company's stock Inventory 5,315
option plans are accounted for in accordance with Property, plant and equipmenc, nec 180,663
Accounting Principles Board Opinion No. 25, Real escace held for sale 59,466
"Accounting for Stock Issued to Employees." The Incangible assets 6,984
Company has adopted disclosure requirements of Goodwill 118,469
Other assets 542
Statement of Financial Accounting Standards No.
123, ("SFAS 123"), "Accounting for Stock-Based Total assecs 388,827
Compensation" (Note 11 Accounts payable and accrued expenses 32,456
Other liabilities 2,040
Debt assumed 25,296
R e c 1 a s s i f i c a t i o n s Certain reclassifications Deferred income caxes 31,688
have been made to the accompanying consolidated Tocal liabffities 91,480
financial statements for the years ended September Tocal net assecs acquired $ 297,347
30, 1996 and 1995 to conform to the current
period presentation. The following unaudited pro forma results of
operations of the Company for the years ended
Note 3. Acquisitions September 30, 1997 and 1996, assume that the 53
* * * * Acquisition occurred on October 1, 1995. The pro
On January 3, 1997, the Company acquired from forma results of operations include the effects of the
Ralston Foods, Inc. 100% of the stock of Ralston Company's initial public offering only from the
Resorts, Inc. ("Ralston Resorts"), the owner effective date of the Offering. These pro forma
and operator of the Breckenridge, Keystone and results are not necessarily indicative of the actual
Arapahoe Basin mountain resorts located in results of operations that would have been achieved
Summit County, Colorado, for a total purchase nor are they necessarily indicative of future results of
price, including direct costs, of $297.3 million. operations. The unaudited pro forma financial
In connection with the Acquisition, the Company infarmation below excludes the results of Arapahoe
refinanced $139.7 million o£indebtedness, issued Basin mountain resort, which the Company
7,554,406 shares of Common Stock valued at divested pursuant to the Consent Decree.
$151.1 million to Ralston Foods, Inc., assumed Years ended September 30,
liabilities of $59.8 million and incurred $9.0 million In chousands,
except per share amounts 1997 1996
in acquisition costs. Pursuant to a consent decree (unaudited)
with the United States Department of Justice and Resort revenue $ 291,203 $ 267,409
the Attorney General of the State of Colorado (the Real estace revenue 71,737 49,831
Total revenues 362,940 317,240
"Consent Decree"), the Company sold the assets
Net income 17,822 8,505
constituting the Arapahoe Basin mountain resort Nec income per common share 0.54 0.29
on September 5, 1997 for a sum of $4.0 million.
The Acquisition was accounted for as a purchase
combination. The purchase price was allocated
to the fair values of Ralston Resorts' assets and
~ - : . -._..r1
Notes to Consolidated Financial Statements (continued)
Noce 4. Long-Term Debt million of debt assumed in the Acquisition and the balance of
* * * * the Term Loan Facilities was used to repay borrowings under
Long-term debt as of September 30, 1997 and 1996 the Company s former credic facilities. The proceeds of the loans
is summarized as follows made under the Revolving Credit Facility may be used to fund
(in thousands):
the Company's working capital needs, capital expenditures and
othergeneral corporate purposes, including the issuance of letters
Years ended September 30, of credit.
1997 1996 The Revolving Credit Facility matures on April 15, 2003.
Senior Subordinated Notes(a~ $ 62,647 The minimum amortization under the Term Loan Facilities is
Industrial Development Bonds~b) 61,263 37,903 $11.5 million, $14.0 million, $19.0 million, $21.5 million,
Credit Facilities(`) 202,000 44,000 $26.5 million, $31.5 million, and $41 million during the
Other(d) 1,799 200 fiscal years 1998, 1999, 2000, 2001, 2002, 2003, Qnd
265,062 144,750 2004, respectively. The Conlpany is also required to make
Less-current maturities 1,715 63 mandatory amortization payments under the Term Loan
$ 263,347 $ 144,687 Facilities with excess cash flow, proceeds from asset sales and
proreeds from equity and debt offerings.
(a) The Senior Subordinated Notes bore interest at 12 %a% The Credit Facilities reguire that no more than S 125.0
and had an original maturity date ofJune 30, 2002. On million in the aggregate be outstanding under the Revolving
March 10, 1997, the Company redeemed all of the Senior Credit Facility for a period of 30 consecutive days during each
Subordinated Notes with proceeds from the Offering. In fiscal year, such period to include April 15.
connection with the redemption, the Company paid a Barrowings under the Credit Facilities bear interest annually
contractual early redemption premium of 4% of the balance at the Company s option at the rate of (i) LIBOR (5.7% at
redeemed, which is induded in interest expense for the year September 30, 1997) plus a margin (ranging from .50% to
ended September 30, 1997. 1.75% in the case of Tranche A and the Revolving Credit
54 (b) The Company has $41.2 million of outstanding Industrial Facility and 2.25% in the case of Tranche B) or (ii) the Base
Development Bonds issued by Eagle County, Colorado which Rate (defined as, generally, the higher of the Federal Funds
accrue interest at 8% per annum and mature on August 1, Rate, as published by the Federal Reserve Bank of New York,
2009. Interest is payable semi-annually on February 1 and plus 0.5%, or the Agent's prime lending rate, which was
August 1. The Company has provided the holder of these 8.50% at September 30, 1997) plus a margin up to .375%.
bonds a debt service reserve fund of $3.3 million, which has In addition, the Company must pay a fee on the face amount
been netted against the principal amount for financial reporting of each letter of credit outstanding at a rate ranging from .625%
purposes. The Industrial Development Bonds are secured by to 1.875%. The Company must also pay a quarterly unused
the stock of the subsidiaries of Vail Associates and the United commitment fee ranging frorn .20% to .50%. The interest
States Forest Service permits. In connection with the Acquisition, margins and fees described in this paragraph fiuctuate based upon
the Company assumed two series ojrefunding bonds. The the ratio of Funded Debt to the Company's Resort EBITDA
Series 1990 Sports Facilities Refunding Revenue Bonds have (as defined in the Credit Agreement).
an aggregate principal amount of $20.4 million, bear interest
at rates ranging from 7.2% to 7.875% and mature installments (d) Other obligations bear interest at rates ranging from 6.5% to
in 1998, 2006 and 2008. The Series 1991 Sports Facilities 7• 5% and have maturities ranging from 1999 and 2002.
Refunding Revenue Bonds have an aggregate principal amount
Aggregate maturities for debt outstanding are as
of $3 million and bear interest at 7.125% for bonds maturing
in 2002 and 7.375%for bonds maturing in 2090. follows (in thousands~:
(c) OnJanuary 3, 1997, in connection with the dosing of the As of September 30, 1997
AcquisiNon, all amounts outstanding under the Company's Due during year ending September 30:
former credit facilities were repaid with proceeds from new credit 1998 $ 1,715
facilities (the "CrediC Facilities"). The Credit Facilities provide 1999 374
for debt financing up to an agQregate principal amount of $340 2000 342
million and consist of (i) a$175 million Revolving Credit 2001 353
Facility, (ii) a$115 million Tranche A Term Loan Facility and 2002 1,875
(iii) a$50 million Tranche B Term Loan Facility (toAether with Thereafter 260,403
Tranche A, the "Term Z.oan Facilities"). The Term I.oan Total debt $ 265,062
Farilities were used to refinance $139.7 million o.f the $165
.
Note 5. Supplementary Balance Sheet Note 6. Retirement and Profit Sharing Plans
Information * * * *
The Company maintains a defined contribution
The composition of property, plant and equipment retirement plan, qualified under Section 401(k)
follows: of the Internal Revenue Code, for its employees.
Years ended Sepcembet 30, Employees are eligible to participate in the plan
In chousands 1997 1996 upon attaining the age of 21 and completing one
Land and land improvements $ 95,124 $ 66,966 ye2r of employment wlth a minlmum of 1,000
Buildings and terminals 152,171 60,928
hours of service. Participants may contribute from
Machinery and equipment 146,741 68,286
Aucomobiles and trucks 14,958 3,729 2% to 15% of their qualifying annual compensation
Furnicure and fixcures 28,282 12,817 up to the annual maximum specified by the
Conscruction in progress 33,691 19,728 Internal Revenue Code. The Company matches
470,967 232,454 an amount equal to 50% of each participant's
Accumulated depreciacion contribution up to 6% of a participant's annual
and amortizacion (59,850) (35,175) qualifying compensation. The Company's matching
$ 411,117 $ 197,279 contribution is entirely discretionary and may be
reduced or eliminated at any time.
Depreciation expense for fiscal years 1997, 1996 Total profit sharing plan expense recognized
and 1995 totaled $25.1 million, $11.4 million and by the Company for the years ended September 30,
$11.3 million, respectively. 1997, 1996 and 1995 was $731,000, $594,000 and
$493,000, respectively. SS
The composition of intangible assets follows: Note 7. Income Taxes
Years ended September 30, * * * *
In chousands 1997 1996 At September 30, 1997, the Company has total
Trademarks $ 42,611 $ 41,096 federal net operating loss (NOL) carryovers of
Other intangible assets 38,244 32,639
Goodwill 118,469 - approximately $336.0 million for income tax
Excess Reorganization Value (Note 2) 37,702 37,702 purposes that expire in the years 2003 through
$ 237,026 $ 111,437 2008, $40.0 million of which are not subject to
Accumulaced amorcization (36,761) (26,381) any limitation under Section 382 of the Internal
$ 200,265 $ 85,056 Revenue Code. The Company will be able to use
NOLs which existed on October 8, 1992 (Effective
Amortization expense for fiscal years 1997, 1996 Date NOLs) to the extent of approximately $8.0
and 1995 totaled $8.9 million, $6.8 million and million per year through October 8, 2007. In
$6.7 million, respectively. addition, the Company is limited to use Effective
The composition of accounts payable and Date NOLs to the extent that built-in gains (excess
accrued expenses follows: of fair market value over tax basis at October 8,
Sepcember 30, 1992) are recognized in asset sales that occur
In thousands 1997 1996 through October 8, 1997. As the Company will
Trade payables $ 25,236 $ 20,219 be unable to recognize a significant portion of the
Deposits 10,050 8,044 remaining Effective Date NOLs, the accompanying
Accrued salaries and wages 9,026 5,705
financial statements and tables of deferred items
Properry caxes 5,943 3,182
Liability to complete real estate sold 7,336 1,948 below do not recognize any benefits related to
Other accruals 12,580 8,998 the remaining Effective Date NOLs, except to the
$ 70,171 $ 48,096 extent realized. To the extent any additional tax
.
_ -.,...__...,J..~...rV
Notes to Consolidated Financial Statements (continued)
benefits from these Effective Date NOLs are Significant components of the provision for income
recognized, there will be a reduction in the taxes from continuing operations are as follows (in
reorganization value in excess of amounts allocable thousands):
to identifiable assets recorded at October 8, 1992. _ Years ended Sepcember 30,
During the years ended September 30, 1996 and 1997 1996 1995
1995, the Company recognized the benefit of Currenc:
Effective Date tax attributes which were recorded Federal $ 5,411 $1,502 $ 621
State 997 221 354
as reductions to the reorganization value in excess
Totalcurrent 6,408 1,723 975
of amounts allocable to identifiable assets of Deferred:
$814,000 and $278,000, respectively. Federal 6,850 2,065 2,066
Deferred income taxes reflect the net tax effects Stace 727 435 834
of temporary differences between the carrying Total deferred 7,577 2,500 2,900
amounts of assets and liabilities for financial $ 13,985 $ 4,223 $ 3,875
reporting purposes and income tax purposes.
Significant components of the Company's deferred For the fiscal years ended September 30, 1997, 1996
tax liabilities and assets as of September 30, 1997 and 1995, the Company recognized income tax
and 1996 are as follows (in thousands): benefits pertaining to the exercise of stock options
Years.ended September 30, and restricted stock of $5,509,000, $355,000 and
1997 1996 $288,000, respectively, which are accounted for as
Deferred income tax liabilicies: direct increase to additional paid in capital and do
Fixed assets $ 66,324 $ 35,916
56 Incangible assecs 20,600 19,928 not reduce reported income tax expense.
Tocal 86,924 55,844 A reconciliation of the income tax provision
Gross deferred income tax assets: from continuing operations and the amount
Deferred compensation 1,941 3,081 computed by applying the U.S. federal statutory
Nec operacing loss carryforwards ' 45,649 46,356 income tax rate to income from continuing
Minimum tax credic 1,729 1,208 operations before income taxes is as follows
Oeher, nec 4,490 5,443 (in thousands):
Total 53,809 56,088 Years ended September 30,
Ualuation allowance for
1997 1996 1995
deferred income tax assets (28,122) (22,544) At U.S. federal income
Deferred income tax assets, tax rate $ 11,789 $ 3,135 $ 2,505
net of valuation allowance 25,687 33,544 State income tax,
Net deferred income tax liability $ 61,237 $ 22,300 net of federal benefit 1,121 426 714
Excess Reorganization
The net current and noncurrent components of Value amortization 1,290 773 727
deferred income taYes recognized in the September Other (215) (111) (71)
30, 1997 and 1996 balance sheet are as follows (in $ 13,985 $ 4,223 $ 3,875
thousands):
Years ended September 30, Note 8. Related Party Transacrions ~
1997 1996 * * * *
Net current deferred Corporate expense for each of the years ended
income tax assec $ 24,500 $ 17,200 September 30, 1997, 1996 and 1995 includes an
Nec noncurrent de£erred annual fee of $500,000 for management services
income tax liability 85,737 39,500 f
provided by an affiliate of the majority holder of
Net deferred income tax liability $ 61,237 $ 22,300
~
the Company's Common Stock. This fee is generally development. Rather than payment of an earnest
settled partially through use of the Company's money deposit with the entire balance due in cash
facilities and partially in cash. At September 30, at closing, these contracts provide for no earnest
1997, the Company's liability with respect to this money deposit with the entire purchase price
arrangement was $673,000. (which was below fair market value) paid under
Vail Associates has the right to appoint 4 of promissory notes of $438,750 and $350,000 for
9 directors of the Beaver Creek Resort Company Mr. Daly's spouse and Mr. and Mrs. Thompson,
(Resort Company), a non-profit entity formed for respectively, each secured by a first deed of trust
the benefit of property owners in Beaver Creek. and amortized over 25 years at 8% per annum
Uail Associates has a management agreement with interest, with a balloon payment due on the earlier the Resort Company, renewable for one-year of five years from the date of closing or one year
periods, to provide management services on a from the date employment with the Company is
fixed fee basis. In addition, in accordance with a terminated. The promissory notes were executed
cash flow agreement effective through 2000, Vail upon the closings of the lot sales in December 1996.
Associates will fund the cash needs of the Resort
Company that are not otherwise met through Note 9. Commitments and Contingencies
the Resort Company's operations or borrowings. * * * *
During fiscal years 1991 through 1997, the As of September 30, 1997, the Company had
Resort Company was able to meet its operating entered into real estate contracts for the sale of
requirements through its own operations. certain real estate and related amenities for gross
Management fees and reimbursement of operating proceeds of approximately $29.6 million. The 57
expenses paid to the Company under its agreement Company estimates that subsequent to September
with the Resort Company during fiscal years 1997, 30, 1997, it will incur additional holding and
1996 and 1995 totaled $4.9 million, $5.5 million infrastructure costs of $31.6 million in connection
and $7.0 million, respectively. Related amounts with the sale of the properties under contract and
due the Company at September 30, 1996 were properties closed as of September 30, 1997. The
$599,000. All amounts due the Company have been Company has entered into repurchase agreements
paid as of September 30, 1997. with certain developers who have purchased real
In 1991, the Company loaned to Andrew P. estate from the Company to repurchase certain
Daly, the Company's President, $300,000, $150,000 retail and residential space in the completed
of which bears interest at 9% and the remainder of developments. At September 30, 1997, the
which is non-interest bearing. The principal sum Company has agreed to repurchase various retail and
plus accrued interest is due no later than one year residential space for amounts totaling $10.0 million.
following the termination, for any reason, of On September 25, 1996, the Company declared
Mr. Daly's employment with the Company. The a right to receive up to $2.44 per share of Common
proceeds of the loan were used to finance the Stock (the "Rights") to all stockholders of record on
purchase and improvement of real property. The October 11, 1996, with a maximum aggregate
loan is secured by a deed of trust on such property. amount payable under the Rights of $50.5 rnillion.
In 1995, Mr. Daly's spouse and James P. The Company was obligated to make payments
Thompson, President of VRDC, and his spouse under the Rights only to the extent it receives
received financial terms more favorable than those proceeds under certain real estate contracts
available to the general public in connection with outstanding at September 30, 1996. As of September
their purchase of lots in the Bachelor Gulch 30, 1997, the Company has received gross proceeds
Notes to Consolidated Financial Statements (continued)
under the applicable contracts totaling $49.9 million of this aggregate subsidy to be $16.8 million at
and has made payments under the Rights of $42.2 September 30, 1997. The Company has allocated
million. In addition, the Company's former $8.3 million of that amount to the Bachelor Gulch
Chairman and Chief Executive Officer waived his Village single family homesites which were sold as
right to receive approximately $2.7 rrullion under the of September 30, 1997 and has recarded that
Rights in exchange for the payment of the exercise amount as a liabiliry in the accompanying financial
price on certain stock warrants that he held. On statements. The total subsidy incurred as of
October 31, 1997, the Company paid all remaining September 30, 1997 and 1996 was $1,131,168 and
amounts due under the Rights. $684,642, respectively.
Smith Creek Metropolitan District ("SCMD") At September 30, 1997, the Company has
and Bachelor Gulch Metropolitan District various other letters of credit outstanding in the
("BGMD") were organized in November 1994 aggregate amount of $17.0 million.
to cooperate in the financing, construction and The Company has executed operating leases
operation of basic public infrastructure serving the for the rental of office space, employee residential
Company's Bachelor Gulch Village development. units and office equipment though fiscal 2009. For
SCMD was organized primarily to own, operate the years ended September 30, 1997, 1996 and
and maintain water, street, traf~'ic and safety, 1995, lease expense related to these agreements of
transportation, fire protection, parks and recreation, $6.2 million, $3.8 million and $3.8 million,
television relay and translation, sanitation and certain respectively, is included in the accompanying
other facilities and equipment of the BGMD. consolidated statements of operations.
58 SCMD is comprised of approximately 150 acres Future minimum lease payments under these
of open space land owned by the Company and leases as of September 30, 1997 are as follows:
members of the Board of Directors of the SCMD.
In two planned unit developments, Eagle County Due during fiscal year ending September 30:
has granted zoning approval for 1,395 dwelling 1998 $4,183,769
1999 2,931,506
units within Bachelor Gulch Village, including
various single family homesites, cluster home and 2000 2,269,587
2001 1,931,717
townhome, and lodging units. As of September 30, 2002 1,170,907
1997, the Company has sold 65 single family Thereafter 6,710,671
homesites, has entered into contracts for the sale Tocal $19,198,157
of 35 additional single family homesites and is
preparing to offer additional parcels of land to The Company is a parry to various lawsuits arising
individuals and developers for the construction of in the ordinary course of business. In the opinion
various types of dwelling units. Currently, SCMD of management, all matters are adequately covered
has outstanding $44.5 million of variable rate by insurance or, if not covered, are without merit
revenue bonds maturing on October 1, 2035, which or are of such kind, or involve such amounts as
have been enhanced with a$47.2 million letter of would not have a material effect on the financial
credit issued against the Company's Credit Facilities. position, results of operations and cash flows of ~
It is anticipated that as the Bachelor Gulch the Company if disposed of unfavorably.
community expands, BGMD will become self I
supporting and that within 25 to 30 years will issue Note 10. Business Segments '
general obligation bonds, the proceeds of which will
be used to retire the SCMD revenue bonds. Until The Company currently operates in two business
that time, the Company has agreed to subsidize the segments, Resorts and Real Estate. Data by segment I~
interest payments on the SCMD revenue bonds. is as follows: ~
The Company has estimated that the present value ~
I
~
Years ended Sepcember 30, The Company has two fixed option plans. Under
In thousands 1997 1996 1995 the 1993 Plan, options covering an aggregate of
Nec revenues: 2,045,510 shares of Common Stock may be issued
Resorts $ 259,038 $ 140,288 $ 126,349 to key employees, directors, consultants, and
Real Estate 71,485 48,655 16,526 advisors of the Company or its subsidiaries and
$ 330,523 $ 188,943 $ 142,875
vest in equal installments over five years. Under the
Income from operations: 1996 Plan, 1,500,000 shares of Cominon Stock may
Resorts $ 52,279 $ 32,250 $ 26,076
Real Estate 5,178 7,854 1,543 be issued to key employees, directors, consultants,
Corporate (4,663) (12,698) (6,701) and advisors of the Company or its subsidiaries and
$ 52,794 $ 27,406 $ 20,918 vest in equal installments over three to five years.
Depreciation and amortization: Under both plans, the exercise price of each option
Resores $ 34,044 $ 18,148 $ 17,968 equals the market price of the Company's stock on
Real Estate - - - the date of the grant, and an option's maximum
$ 34,044 $ 18,148 $ 17,968 term is ten years.
Capical eXpenditurer. The fair value of each option grant is estimated
Resorts $ 51,020 $ 13,912 $ 20,320 on the date of grant using the Black-Scholes
Real Estate 56,947 40,604 22.477 option-pricing model with the following
$ 107,967 $ 54,516 $ 42,797
weighted-average assumptions used for grants in
Years ended September 30, 1997 and 1996, respectively: dividend yield of 0%
In thousands 1997 1996 and expected volatility of 29.8% for both years;
Identifiable assecs: risk-free interest rates ranging from 5.66% to 6.68%; 59
Resorts $ 411,117 $ 197,279 and expected lives ranging from 6 to 8 years.
Real Estate 154,925 84,055
$ 566,042 $ 281,334 A summary of the status of the Company's two
fixed stock option plans as of September 30, 1997
and 1996 and changes during the years ended on
Note 11. Stock Compensation Plans those dates is presented below (in thousands, except
* * * * per share amounts):
At September 30, 1997, the Company has two 1997 1996
stock-based compensation plans, which are Weighced- Weighced-
described below. The Company applies APB Average Average
Exercise EXercise
Opinion No. 25 and related Interpretations in Fixed Options Shares Price Shares Price
accounting for its plans. Accordingly, no Outstanding ac
compensation cost has been recognized for its beginning ofyear 3,726 $ 10 2,033 $ 8
fixed stock option plans. Had compensation cost Granced 795 23 1,711 13
Exercised (1,573) 11
for the Company's two stock-based compensation Forfeired (39) 10 (18) 7
plans been determined consistent with FASB Outstanding at
Statement No. 123, the Company's net income and end of year 2,909 15 3,726 10
earnings per share would have been reduced to the Opcions exercisable
pro forma amounts indicated below: ac year-end 1,384 1,177
Weighted-average fair
Years ended September 30, value of options
In thousands 1997 1996 granted during
Net Income the year $ 10 $ S
As Reported $ 19,698 $ 4,735
Pro forma 18,211 4,420
Primary earnings per share
As Reported $ .64 $ •22
Pro forma .59 .21
. -
Notes to Consolidated Financial Statements (continued)
The following table suinmarizes information of the Board and holders of Common Stock elect
about fixed stock options outstanding at September another class of directors constituting one-third of
30, 1997: the Board. At September 30, 1997 and 1996, one
shareholder owned substantially all of the Class A
Opcions Oucscanding Opcions Execcisable Common Stock and as a result, has effective control
Weighted-
Average We]ghred- Number Welghred- of the Company's Board of Directors. The Class A
Range of Number Remaining Average Exercisable Average COri1TTlOri StOCIC 1S COriVeT'tlble lrit0 COTIlri10ri StOCk
Exercise Outstanding Contractual Exercise at Exercise
Prices at 9/30/97 Life Price 9/30/97 Price (1) at the option of the holder, (li) aUtOmltlCall);
$ 6 to 11 1,753,734 6.0 years $ 8 1,312,348 $ 7 upon transfer to a non-affiliate and (iii) automatically
20 co 25 1,155,000 9.5 22 72,000 20 if less than 5,000,000 shares (as such number shall be
$ 6 co 25 2,908,734 7.4 $ 14 1,384,348 $ 8 adjusted by reason of any stock split, reclassification
or other similar transaction) of Class A Common
During fiscal years 1997 and 1996, the Company Stock are outstanding. The Common Stock is not
granted restricted stock to certain executives under convertible. Each outstanding share of Class A
the 1996 Plan. The aggregate number of shares Common Stock and Common Stock is entitled to
granted totaled 12,000 and 62,000 in fiscal 1997 vote on all matters subnutted to a vote of
and 1996, respectively. The shares vest in equal stockholders. In January 1997, the Company increments over periods ranging from three to five increased the number of authorized shares of
years. Compensation expense related to these Common Stock to 80,000,000 shares.
restricted stock awards is charged ratably over the
60 respective vesting periods. Note 13. Subsequent Events
On October 11, 1996 the Company's former * * * *
Chairman and Chief Executive Officer waived his On October 1, 1997, the Company purchased the
right to payments under the Rights with respect to assets constituting the Breckenridge Hilton for a
714,976 shares of Common Stock that he owned total purchase price of $18.6 million. The purchase
and warrants to purchase 408,164 shares of Conunon price includes a cash payment of $18.1 million,
Stock in exchange for the payment of the exercise $0.2 million in assumed liabilities and $0.3 million ~
price on those warrants. In addition, he exchanged to provide for contingent consideration that may
1,164,808 long-term stock options for 336,318 be paid pursuant to the purchase agreement. The
shares of Common Stock. The options exercised Breckenridge Hilton is a 208-room full service
and the options exchanged are reported as options hotel, located at the base of Breckenridge
exercised during fiscal 1997 in the table above. Mountain, and includes dining, conference and
fitness facilities. The acquisition was accounted
Note 12. Capital Stock for as a purchase combination.
* * * * On October 7, 1997, the Company purchased ~
The Company has two classes of Common Stock 100% of the outstanding stock of Lodge Properties, ~
outstanding, Class A Common Stock and Coinmon Inc., a Colorado corporation ("LPP'), for a total i
Stock. The rights of holders of Class A Common purchase price of $30.2 million. LPI owns and ~
Stock and Common Stock are substantially identical, operates The Lodge at Uail (the "Lodge"),
except that, while any Class A Common Stock is a 59-room hotel located in Vail, Colorado, and
outstanding, holders of Class A Common Stock provides management services to an additional 40 i
elect a class of directors that constitutes two-thirds condominiums. The Lodge includes restaurant and
,
conference facilities as well as other amenities.
In addition to the hotel properry, LPI owns a parcel
of developable land strategically located at the
primary base area of Vail Mountain. In addition to
the cash purchase price, the Company expects to
incur approximately $92 million to complete a new
wing of the hoCel which is currently under
construction. The acquisition was accounted for as a
purchase combination.
The Company funded the above acquisitions
with proceeds from iCS Revolving Credit Facilities.
On October 10, 1997, the Company borrowed
an additional $32 million under a new line of credit
with its Credit Facility provider ("the Line of
Credit"), the proceeds of which were used to reduce
the Revolving Credit Facility balance. Borrowings
under the Line of Credit bear interest annually at
the Company's option at the rate of LIBOR (5.7%
at September 30, 1997) plus a margin ranging
from 0.5% to 1.25% or prime plus a margin of
up to 0.125%. 61
On November 5, 1997, the Company
announced the change of its fiscal year end from
September 30 to July 31. Accordingly, the
Company's fiscal year 1998 will end on July 31,
1998 and consist of ten months.
Report by Management I`
1
~
The Company's management is responsible for the preparation, integrity and objectiviry of the
consolidated financial statements and other financial information presented in this report. The
accompanying consolidated financial statements have been prepared in conformity with generally accepted
accounting principles and reflect the effects of certain estimates and judgments made by management.
The Company's management maintains an effective system of internal control designed to provide
reasonable assurance that assets are safeguarded and transactions are properly recorded and executed in
accordance with management's authorization. The system is continuously monitored by direct
management review and by internal auditors who condua audits throughout the Company. The Company
selects and trains qualified people who are provided with and expected to adhere to the Company's
standards of business conduct. These standards are a key element of the Company's control system.
The Company's consolidated financial statements have been audited by Arthur Andersen LLP, independent
accountants. Their audits were conducted in accordance with generally accepted auditing standards, and
included a review of financial controls and tests of accounting records and procedures as they considered
necessary in the circumstances.
The Audit Conuriittee of the Board of Directors, which consists of outside directors, meets regularly with
management and the independent accountants to review accounting, reporting, auditing and internal
control matters. The committee has direct and private access to both internal and external auditors.
62
& _IV Adam M. Aron James P. Donohue
Chairman and Senior Vice President and
Chief Executive Officer Chief Financial Officer
Report of Independent Public Accountants
To the Board of Directors of
Vail Resorts, Inc.:
We have audited the accompanying consolidated balance sheets of VAIL RESORTS, INC., formerly
known as Gillett Holdings, Inc. (a Delaware corporation) and subsidiaries as of September 30, 1997 and
1996, and the related consolidated statements of operations, stockholders' equity and cash flows for each of
the three years in the period ended September 30, 1997. These financial statements are the responsibility
of the Company's management. Our responsibility is to express an opinion on these financial statements
based on our audits.
We conducted our audits in accordance with generally accepted auditing standards. Those standards
require that we plan and perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. An audit also includes assessing the
accounting principles used and significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in all material respects, the
financial position of Vail Resorts, Inc. and subsidiaries as of September 30, 1997 and 1996 and the results
of their operations and their cash flows for each of the three years in the period ended September 30, 1997
in conformity with generally accepted accounting principles.
63
ARTHUR ANDERSEN LLP
Denver, Colorado,
November 5, 1997
?
Corporate Information Board of Directors
Execurive Offices Adam M. Aron Marc J. Rowan
Post 0ffiCe Box 7 Chairman of the Board of Directors Founding Principal,
Vail, Colorado 81658 and Chief Executive Officer, Apollo Advisors and Lion Advisors (970) 845-2500 Vail Resorts, Inc. John J. Ryan III
Annual Meering Frank Biondi Financial Advisor
February 24, 1998 Chairman and Chief Executive Officer, John F. Sorte
New York, N.Y. Universal Studios Inc. President, New Street Advisors, L.P.
Common Stock Leon D. Black Bruce H. Spector
Vail Resorts, InC. Common Fouriding Priricipnl, Principal, Apollo Advisors II, L.P.
stock is listed and traded on the Apollo Advisors and Lion Advisors
William P. Stiritz
New York Stock Exchange Craig M. Cogut Chairman of the Board,
(MTN). Private Investor Ralston Purina Company
Independent Auditors Andrew P. Daly
James S. Tisch
Arthur Andersen LLP President, I/ail Resorts, Inc.
President and
Denver, Colorado Stephen C. Hilbert Chief Operating Officer,
Counsel Chairman, President and Loews Corporation
Cahill Gordon & Reindel Chief Executive O~/'icer,
New York, N.Y. Conseco, Inc.
64 Transfer Agent and Registrar Robert A. Katz
Norwest Bank Prina'pal, Apollo Advisors and
Minnesota, N.A. Lion Advisovs
Form 10-K Thomas H. Lee
A eopy of the Cotnpany's Form Founder and President,
10-K, as filed with the 77iomas H. Lee Company
Securities and Exchange William L. Mack
Commission, is available President and Managing Partner,
without Charge by wrlting to: The Mack Organization
Investor Relations Antony P. Ressler
Vall Resorts, Inc. Founding Principal,
Post Offlce Box 7 Apollo Advisors and Lion Advisors
Vail, Colorado 81658
Joe R. Micheletto
Website Chief Executive Officer and President,
wwwvailresorts.com Ralcorp Holdings, Inc.
C 1997 Vail Resorts, Iuc. Design: Martin Design Associates Photography: Jack Af}leck, Dan Coffey, Ken Redding Carl Scofield and Bob Winsett
~
Printed on recyded paper
Officers
Adam M. Aron Christopher P. Ryman Yail Resorts Development Company
Chairman of the Board of Directon and Senior Vice President and
Chief ExecuNve Ojficer Chief OperaNng Officeg
I/ail/Beaver Creek
Andrew P. Daly James P. Thompson
Pruident Bri2n D. Sm1th President
Senior Vice Pfesident, Sales
Jarnes P. Donohue Edward O'Brien
Stnim Vice Presidmt and Douglass C. Cogswell Senior V'ue President and
Chief Finattcial Offiter Vice Preside?+t, Ckief Fittancial O,Quer
William A. Jensen ~~lBeaver Creek Resort Propmm Roger T. Beck
Senior Vice President and Elizabeth J. Cole Vice President,
Chief Operaring Ofter, Vice P?esident, Breckenridge Development
Breckenridge Business Development
David G. Carbin
Bruce W. Mainzer Charles S. L'Esperance vice President, Development
Senior Vice President, Marketing Vue P?esident,
ormat&m S stems Jack D. Hunn
James S. Mandel I
_ " Y v'ue rmsident,
' Senior Vice President and General Coutuel Paul A. Testwuide Design and Conshuction
V'ue President,
John W. Rutter yail/Beaver Creek Mountain OperaNons J. Patrick Maher
Senior Vice President and Vice President, Development
Chief Operating Offlcer, Eric C. Resnick
Keystone Treasuier
~ ~¦~~~^t ~~r r
.
.
s ,
, ~ ~ ~ • ~ ,
4 . ~ 4~ .3-+..... .~..$-e-' _ . ~ . ~ .
~
~ ~ A?'~.~:~ . .
" . e ' ~A^'~ • ,y
d
L:
~``,fy~
t -i
.
.
~ ~ . . ~ .
~ _ . ~ . .
~ . .
~ ~1 ~ . . . ~ • ~ .
~ , ~ . • • ~ ~ i
pk J
.
~ ' 00~ ~~~F- ~ • X ~ e~, .'M
t
~
,
~
a
, da'.~ .
' ~ . . . . . . .
Senior Officers - Bottom mw (L to R): Jim Thompson, Adam Aron, Andy ontt ur,
Brian Smith, Bruce Mainzer, Jim Mattdel. Top row (I. to R): Ed O'Brien, ' , ' Jenaen, John Rutter.
qw ;0.~ ti~~~t Yw _p , s ~e~ ~ ~yhy~ • ~{~~"~'A , , wd ~y 4~.~';~~~ ~r' ..1
~ ..A i ;~1' ~ ~ I •x ~
r
iq~1' '~v 'RM ~y ~ ~y _ ~ ,~~t. ^+,~-~~4 l ~
. .r~+'~q"~.. '1~` G'' ~ iJ~~ L y,~+~r t • ' ~ ~ ~'4 ?r~.~ ~'.,~,~1+ ~ ~77~ y~ ' f ~'y/ • ~ `
Gr „
s~ . • . 7. ~ 4 M ~ 1Mw „~,t V~~~_' "i"' y v,I. ~ ~'1 ~
. e1G t a. ? . I y ~.-~y .~y ~
...ti..y.! ~ ~ ~ ? •11 M
.
.
a t. ..,'"~~m ~ty f' i ~``"u T`~~ ~it1 ~ILN, ~ Y~~,"~ !"-•"~.'Y•1'
~
~ a~ ~
~ •r `
. , ~ . r . ^
1, , ~^.r r ,`~y.~a?. _ ~ ~.1"'",i ~'k,~ ~Wl .r , pr1~+
"°S ~ ~ µ t~ ~ • ; x.~ ,
~ ~ ~ y ~ " ~ ~ ' ~'.t~ ~,I»+~~i~ ~ ' , ~ , ti ~ f . 1?: "y '~r~'~
a'r• ? ~q ~ •l ~ " r /
, . .
~ rt~.~5i;' .'~""~~~r?, .R i~'sti .l~`~'~~ t y~{ ` ~ i, ~ ~f`y~~
,
• ~ ~ ~l' : ~ ~+i • ~ ~t rF T ' et~4
W
.
~
~ e..'~.~lw~'M~ ~ •r'.~ t+` .~.•~~r~yy,~~~~,w~ f'~. J i^~ ~r M~` ^ ,I~~~JS~r ~ 1
a , . .
~ ~ w " ~i~ ~ •r.. ~,yp{ / .
, , . . ,
R . ' a q .s , . ' . ,
~
. .114'
.
• ~ ~
: ~a ~ + R e,y'~ " ' ~ t ~
.
, ~ ,d? r , • ~ c ~ • + ' ~ .
~.r~,;+',~Mr• . .>4,, ~ ~ ~ w ,~'`s ~.o;
1'~r'r. ~~.a~;~~. 'Mr ~ ~C• ? ~ 4'~' t
.
t rr~ `~FV1" ' a~•~~ r~.S r~~~
<
s 4
l: ~ ~ : ~ f~ f . r":
i
. ~
J.,. ~ , ~y." ^ ~r • X ~ ~ .'S.
, , .
. , '
? '
! • • I ' , ~ ,
A..: ~ c ',~l~''.: % ~ ,i}~' ' '.'4j;." ~`V ~~`'~.i, ~~i ~r~~' ~~~+r?
• . . ~ y~.,, ~ ~ rt~, ~..,~Y~~,~,.'y»`~ , ~ ~ - ..~.4'~' 'J~1 f:..r".. ~'b ~~t~
~ • J . At. r ~'ti ~~y~ ~ y~ ~ = r , e~
• ~ `
. " j
"y~r.,•., ,y'"• ~~r'"l"'~• ~ ~ , lf.te +y ~ ~ ~'1~.r ~~r
~de.~:~ " ~ • , ~ _ y~r, ~ .~j;1~s. ~ ~
.
.
. ~
.
~
..21 ~'~°w "1r.~a,,,• ~ ~ ~ . t i: ~4
~ ,q, , ~
~
i . ~.T-,
.
, , ti, t~: ~ vy
. ,
. , .
.~~i, .
1
v~t~ . K l «1~~~~ + J` M',,r",,~5?` ~
. ~ .
y~~' • , ~ ' . ' ~ ' . . , ~ ,t;,
. , , • y ~ • . ~
-'1 ,~w~' . ,r1r M' v`~'r? ~ .t
. . -W'
.
d ry~iA ,~r~r r ' 1 J , ~`s ~ e ~ ' • ~'0'
• ~
~ . n.., ` ,~1,~ . 11.4 ~ ~ I. ' . ~ `vC I ~'Y,`~ _
. ~ .l"~? ~ "S. ~ +7 , . • .~,v, s ~ r J
„
W Myy ~ ~
f.
. +_tr
_
~
«
' ~ , r, . 2~~~~. r ~
~ ~5 M r ~•t
~
„
~ .
. . .
. . . . : ~
I~r` • •"~1•' "t' ~ ~ .t ~ '1
J'.^ .~j~ • ~ -
• ~ .
. . ~ {
~ + ~A ~ F~~ 1... ..r'.~~. A . wy 4` '-ol ' • ~.+~1~• , h . ~ (r
, -y. I M ''jl',. ~ p-'d r . ~ 4t •.rM''' ~i
~.7: '~i~'rf.~~~ ?.,,1~?
, . . r
.
.
' ~ • .iw' ~ ,
.
I . . y ,
'r` • . }c~ ~
r ~ ~ :t ~ J ~ " 4~? f ` q4: ~ tw:
~ . , • ' ..~F t~i4 ~'t.~ s
?
. .
+
t? . . j. y..' ~ , 4~ i.. ~ f' ~ .
~ . f,;,. ' y,~ , . . ' '
,
.
L /
. • ,
- ~ J yC t ~ w; ? . ~ .
~ , ' ~'S ' ~.e~ ''~y , !y ' r'~''~ ~ ~ ~'~m Jt " ~
. • t ,J,v
.
• • .
~Ar• ~ ` ~
. ; .
r . ~ . ? .
.r : . . ~?~I . ~"~',i,v. . L~ ~ - a ,J'~±~~ 1 . ~ { . a .
. , . ,
~"i ~ J,f~ r_ J , L'?;-''(~. "`r;. ~i~~' .Jw:~~. ~?~"4 r+r'„ ~`'~a
7c / e ..t ~ r? }y . y; ,
~ y ~'"4 r.+~,. . ! ~ ~ ~i+7i i3.~ 1 , y,•
.
y • i~"i.jo'~*+~' ~ aV,,a ' Y }j~~` Y' ~~y?~{•,~' u ~ r
~~/e ~j,,~;~:~..~". f •'~,~.,'r~.I'T '~~y' ~~j . r~~. ~
Mt*1 wM~ ~e,~? ~ Sti ~ te ~e~'' 4 ~'~~r•'lr l} a?„
. ,
• ~ '.r J~.•...r. r~,~ ~y ~i` ~j K~'l~ ~ , f.. ~ ~~1' ~1 t~
`
7A ~ r ; t ' p "~V . f"',~.. •.t ~ .
` yr ~3`•~ .w` r~ i~ ? ',l ' y~1 ~i l~
s? (y". , , . ~ ~ + . . A t~, ty. Y ti +~.r,, „
. ? . y~ I
..n'H~' ~ '~i,~~ ~ ~ i._~ ~ . ~ ) r;.i ~'{„+Yv ".'1 ~ .'`'~'_'s;. 'l •t/'"S ~
~ "~r~,`~ ~~~T MS~ w•4` C`
, ~ r ,i~ ,l k y IF . ~ ' t' f " • ti,. w W ~ . ~ . " ~y
.
~4' ,~,~K"+„•• s~. 'C"fi,q:^ fs~~~' ~ d ~Y~. .v, ~ ~
' ' ' " ' ~ ~y r ' - ? > ira.`. ~